(Image source from: Financialexpress.com)
The trade agreement between India and the United States is expected to be signed early next week. This deal will result in the US reducing its mutual tariffs to 18 percent and India halting its oil purchases from Russia. Additionally, India is set to spend US$500 billion on energy and technology products from the US, as informed by sources on Thursday afternoon. High-ranking US officials are anticipated to arrive in Delhi for the signing event. Details of the agreement, which the opposition has demanded due to their frustration over being uninformed about negotiations and the deal's announcement, will be released later. However, government representatives emphasized that the sensitive dairy and fishery sectors, as well as farmers, have been sufficiently protected from American imports. Sources also mentioned other trade agreements made in 2025 with countries like Oman, the UK, New Zealand, and the EU, stating that no compromises were made in those deals either.
President Donald Trump shared the news of the agreement in a post on Truth Social on Monday night, viewing it as the initial move towards a long-anticipated comprehensive trade arrangement between the two nations. There is hope that this will elevate mutual trade to an impressive US$500 billion by 2030. It was reported earlier that the deal was delayed because Washington sought access to agricultural and dairy markets, which are vital for millions of people, including farmers living in poverty and those from disadvantaged backgrounds. According to sources, the Indian government made it clear that these concessions were not negotiable. When Trump announced on Monday night that a deal had been settled, the opposition quickly raised concerns about the ambiguity regarding various matters, such as when it would take effect and alternative oil sources; in 2025, India purchased almost 21 million barrels, according to tracking firm Kpler. The opposition protests also led to regular interruptions in Parliament, overshadowing Commerce Minister Piyush Goyal's Lok Sabha address yesterday regarding the trade agreement.
During the brief time he was able to speak, Goyal mentioned that the deal would encourage local manufacturing and design, providing support to the struggling MSME sector. He also noted that the new reciprocal tariff would be lower than those of other major countries exporting to the US.
