"Farmers Protected, Will Buy Oil From Non-Sanctioned Nations": Sources On India-US Deal

The India-US trade deal agreed upon between US President Donald Trump and Prime Minister Narendra Modi does not compromise the interests of Indian farmers, top government sources said. They also clarified that India will continue to buy crude oil from countries that are "not under sanctions". India is the second-largest buyer of Russian oil, which is under US sanctions.

On Farm Sector

India's refusal to expose its politically sensitive agriculture sector to greater US access has been a point of contention between Washington and New Delhi during the free trade agreement. New Delhi has been reluctant to open agricultural sectors like soybean and dairy.

Sources told NDTV that sensitive sectors in agriculture and dairy, which have been protected so far, will continue to be shielded.

Earlier, reports claimed that India has offered market access for some agricultural products as part of New Delhi's commitments under the deal. India recently offered select market access for agricultural products to the European Union under a trade deal.

On Oil Trade

Trump said Washington will slash its tariff on Indian goods to 18 per cent from the current 50 per cent in exchange for an agreement from New Delhi to halt Russian oil purchases and instead buy oil from the US and potentially Venezuela.

India has been importing around 1.5 million barrels of Russian crude per day, even after Trump imposed 25 per cent punitive tariffs on Indian goods, making it over one-third of the overall Indian imports, according to global trade data provider Kpler.

Sources in the government said India will also continue to purchase crude oil from countries around the world that are not under sanctions, based on the rate.

"We did not buy from Venezuela when sanctions were in place. Now that sanctions are lifted, we will buy it," sources said, adding that New Delhi will continue prioritising its people in energy purchases.

On a $500 Billion Trade

Trump also said that as part of the trade deal, India has agreed to several measures, including reducing tariffs and non-tariff barriers to "zero" and buying over $500 billion of US goods, including energy, technology, agricultural products, and coal.

On the term of the $500 billion trade commitment to the US, sources said the figures are reflected in aircraft deals and other related investments.

"The new trade deal will unlock massive economic value for India," they added.

India's exports to the US rose 15.88 per cent year-on-year to $85.5 billion in January-November, while imports stood at $46.08 billion, Indian government data showed.

"The commitment to buy US products covers sectors like pharmaceuticals, telecom, defence, petroleum and aircraft. It will be done over the years," the official told news agency Reuters earlier.