- Indian farmers are fully protected in the US-India trade deal, says Commerce Minister Piyush Goyal
- India excluded self-sufficient sectors from the trade deal to safeguard domestic markets
- US tariffs on Indian goods were cut from 50% to 18%, lower than tariffs on competing economies
Indian farmers are fully protected, the government reassured today, as the US-India trade deal seeks to open the domestic markets for American produce. The farm sector hasn't been opened fully, Commerce Minister Piyush Goyal pointed out, adding that sectors where India is self-sufficient have been kept outside the deal.
"I can say with absolute certainty that our farmers, artisans, and handloom industry will not suffer any harm," Goyal said at a briefing, describing the trade deal as "fair, equitable, and balanced."
No concessions have been given on items that are considered sensitive in India, he added.
Lower Tariffs Than Neighbours
India faces lower US tariffs than other competing economies, Goyal told reporters. Under a joint framework released last night, the US has slashed the reciprocal tariff on India from 50% to 18% and withdrawn the additional 25% duty.
"18% is lower than the tariffs imposed by all our neighbouring countries and other countries with whom we compete, and this will greatly benefit us and our exporters in the coming days"," said Goyal, pointing out that China faces 35% tariffs, Vietnam and Bangladesh 20%, and Indonesia 19%.
Zero Tariff On Exports
Many items can now be shipped to the US without paying any tariff, Goyal declared in his briefing today, citing smartphones, gems, diamonds, and pharma products as examples.
Many agricultural products will be subjected to zero tariff when exported to the US, Goyal said. This includes spices, tea, coffee, coconuts, coconut oil, cashews, and several fruits and vegetables.
No GM Products In India
No genetically modified products will be imported into India, the commerce minister asserted. GM crops, meat, poultry, dairy, soyabean, maize, rice, wheat, sugar, millets like jowar, bajra, ragi, amaranth will not be allowed in India at reduced tariffs.
No concession has been given to fruits like banana, strawberry, cherry, and citrus fruits in the deal, he said, asserting that imports will not be allowed for fruits that are grown in India.
Besides, green tea, kabuli chana, moong, oilseeds, groundnuts, malt and malt-based products, non-alcoholic beverages, starch, ethanol, tobacco have not been given any tariff relief in this deal, the minister said. Quota-based duty concessions have been granted for soyabean oil imports and a minimum import price of Rs 80 per kg will be applied on apple imports.
"There are some people in the nation who are against the interests of the farmers. They mislead the public of the nation. They are surprised to see that no steps have been taken in the India-US trade agreement that go against the interests of the farmers of the nation," Goyal said in a swipe at the opposition.
Big Opportunity For Exporters
Goyal said that there is a "wave of happiness" across the country due to the trade deal. There is great enthusiasm in every sector of the country regarding the future, he said.
"It seems that in the coming days, new opportunities will open up, and the United States of America, the world's largest economy, an economy of approximately thirty trillion dollars, will now open up to our exporters with most-favoured-nation status," added the commerce minister.
