India Promises to Protect Farmers and Small Industries in Ongoing US Trade Negotiations

The remarks hold significance as the United States is pursuing concessions in India's agricultural sector.

New Delhi:

Commerce and Industry Minister Piyush Goyal stated on Saturday that negotiations between India and the United States regarding the proposed bilateral trade agreement are advancing in a cordial atmosphere, emphasizing that New Delhi will safeguard the interests of farmers, fishermen, and the MSME sectors.

"Bharat ke kisano ka, machhuvaaron ka, Bharat ke MSME sector ka, jub tak desh hiton ko puri tarah se hum sambhalen nai, tab tak koi agreement kiya nai jata (No agreement can be finalized until we fully protect the interests of India's farmers, fishermen, and MSME sector)," he informed reporters here.

He was responding to inquiries about the progress of negotiations between the two nations on the proposed pact and its potential timeline for conclusion.

"Talks are progressing in a cordial atmosphere," he noted.

These comments are particularly important as the US is seeking concessions within India's agriculture sector.

The Indian delegation, led by Commerce Secretary Rajesh Agrawal, visited Washington this week to engage in trade discussions with their American counterparts.

In February this year, leaders from India and the US instructed officials to negotiate a proposed Bilateral Trade Agreement (BTA).

They have established a deadline to complete the first phase of the agreement by fall (October-November) 2025. To date, five rounds of negotiations have been completed. Last month, Goyal headed an official delegation to New York for trade discussions.

These deliberations are crucial as relations between the two countries have been experiencing significant strain following the Trump administration's imposition of a substantial 50 percent tariff on Indian goods. This includes an additional 25 percent import duty for purchasing Russian crude oil.

India has characterized these duties as "unfair, unjustified and unreasonable".

However, recent telephone conversations between Prime Minister Narendra Modi and US President Donald Trump have generated optimism for a positive outcome from the ongoing negotiations for the trade deal.

After a brief interval, Assistant US Trade Representative for South and Central Asia Brendan Lynch conducted discussions with Indian officials in New Delhi on September 16. During that meeting, both parties agreed to pursue an early and mutually beneficial conclusion to the agreement.

The proposed pact aims to more than double bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion.

The US has maintained its position as India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (USD 86.5 billion in exports).

It represents approximately 18 percent of India's total goods exports, 6.22 percent in imports, and 10.73 percent in the country's overall merchandise trade.

India's merchandise exports to the US declined by 11.93 percent to USD 5.46 billion in September due to the high tariffs imposed by Washington, while imports increased by 11.78 percent to USD 3.98 billion during the month, according to commerce ministry data.