NEW DELHI: India’s commerce minister said on Wednesday the government had succeeded in protecting the country’s critical agriculture and dairy sectors in its trade deal with the United States announced this week.
Agriculture and dairy form the backbone of India’s rural-driven economy, employing over 700 million people.
Farmers fear that opening these two sectors to foreign competition would rob vulnerable households of their livelihoods.
The trade deal was announced on Monday after months of uncertainty and negotiations between the two countries.
“The Indian side has succeeded in protecting the interests of its sensitive sectors, particularly agriculture and dairy sectors,” Piyush Goyal told the lower house of parliament.
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“This framework agreement, with the world’s largest economy, which will accelerate global growth and innovation in the coming years, is in the broader interest of the people of India and the nation.”
US President Donald Trump said the deal, which would lower levies to 18 percent from the 25 percent imposed on Indian goods last year, came together after Prime Minister Narendra Modi promised to stop buying Russian oil.
Washington has argued the oil sales help Moscow generate revenue to fund the war in Ukraine.
Goyal said the revised tariff was lower than what the US had imposed on many countries in the region and would increase “India’s export competitiveness in the American market.”
He also said both sides were working to complete the technicalities and the details of the deal would be announced soon.
When announcing the deal, Trump also said New Delhi had agreed to purchase more than $500 billion worth of US energy, technology, agricultural, coal and other goods.
While Trump had struck deals with most governments since he unveiled sweeping tariffs in April last year, Indian officials had struggled to follow suit.
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