Energy security, export competitiveness at core of India-US trade deal: Piyush Goyal

Union Commerce and Industry Minister Piyush Goyal on Wednesday told Parliament that ensuring the energy security of India’s 1.4 billion people remains the government’s foremost priority, even as the country deepens trade ties with the United States.

Speaking during a statement on the India-US trade deal in the Rajya Sabha, Goyal said diversifying energy sources in line with market conditions is central to India’s national strategy. "Ensuring the energy security of 1.4 billion Indians is the supreme priority of the government."

Highlighting India’s long-term development goals, Goyal said the country will need to rapidly expand capacities across key sectors to achieve its Viksit Bharat vision. "As India proceeds on the path to Viksit Bharat, we will need to grow our capacities enormously in multiple sectors, including energy, aviation, data centres, and nuclear power," Goyal remarked, pointing out that the US is a world leader in these fields.

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He said India and the US have finalised several components of a bilateral trade agreement after extensive negotiations and will now move towards completing technical processes and paperwork to unlock the deal’s full potential.

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Tariff reduction boosts India’s export competitiveness

The commerce minister described the agreement framework as a landmark step in strengthening bilateral ties and advancing India’s development goals by 2047. He added that the 18 per cent tariff announced by US President Donald Trump is lower than rates imposed on several competing countries.

He told the House that negotiating teams from both sides worked over the past year to arrive at a balanced and mutually beneficial agreement while safeguarding sensitive sectors. "The US side, too, had areas that were sensitive from its point of view. Following a nearly year-long discussion spread over many rounds, the two negotiating teams were able to narrow their differences significantly and finalise several areas of the bilateral trade agreement," Goyal said.

Agriculture, dairy interests fully protected: Goyal

Addressing concerns raised by Opposition members, Goyal stressed that India’s agriculture and dairy sectors remain fully protected under the framework. Goyal said India and the US are complementary economies and the trade deal between the countries is beneficial for both parties. Since Prime Minister Narendra Modi’s visit to the US in February 2025, both sides have been negotiating a bilateral trade agreement aimed at delivering gains for both economies.

Deal announced after PM Modi-Trump phone call

The agreement was announced following a phone call between Prime Minister Modi and US President Donald Trump on February 2. "Negotiators from both sides have been at various levels over the past year. During the negotiations, both sides safeguarded their important and sensitive sectors from the trade deal, at the same time ensuring maximum benefits for both countries," Goyal told the Lok Sabha.

He reiterated that India secured protection for sensitive sectors, particularly agriculture and dairy, during the negotiations. "There were sectors which were important and sensitive from the US point of view. After negotiations for nearly a year, both sides have been successful in finalising several areas of the bilateral trade agreement," he said, as Opposition members raised slogans in the House.

Goyal underlined that the reduced tariff structure will strengthen India’s position in the US market. "I want to emphasise that the tariffs (under this deal) are lower than those imposed on competing countries, which will increase India's export competitiveness in the US market. This agreement will provide significant comparative advantages to Indian exporters, particularly in labour-intensive sectors and manufacturing," he said.

He added that India’s core sensitivities have been fully addressed and that the agreement would create fresh opportunities for MSMEs, skilled workers and domestic industries.

Reiterating the government’s stance on energy imports, Goyal said all decisions are guided by India’s broader national interest. "All actions are taken keeping this in mind. I urge the honourable members to view these issues from a holistic perspective," he said, referring to energy procurement under the trade deal. He noted that as India moves towards becoming a developed nation, strengthening cooperation with the US in sectors such as energy, aviation, data centres and nuclear power is both natural and strategic.

Also Read: India-EU FTA safeguards Indian industry from carbon tax impact, supports decarbonisation: Piyush Goyal

Trade deal aligns with Atmanirbhar Bharat vision

"This framework agreement, which will drive global growth and innovation in the coming years, is in the wider interest of the people of India and will greatly benefit the country. It empowers both "Viksit Bharat" and "Atmanirbhar Bharat" (Self-reliant India)," Goyal said. The Trump administration had earlier imposed steep tariffs on major exporters, including India and China, with Indian goods facing a 50 per cent levy since August 2025. These tariffs have now been reduced to 18 per cent following the recent leaders’ call.