'The India-USA trade agreement prioritizes the protection of farmers' interests, with strategic energy purchases potentially part of this new deal,' revealed government sources to India Today. According to these sources, the dairy sector will also remain safeguarded, with no compromise on critical security provisions during discussions. On Monday, American President Donald Trump stated that reciprocal tariffs on Indian goods would be reduced from 25 percent to 18 percent under this agreement. This change is expected to boost Indian exports.
Trump also claimed that India will cease purchasing Russian oil. Government sources confirm there has been no compromise on farmers' interests. Sensitive agricultural and dairy sectors remain protected, and India will continue to buy crude oil from where sanctions don't apply, based on rates.
'We'll Now Buy Oil from Venezuela'
Sources indicated that despite efforts to reach larger markets, New Delhi will maintain security in both agriculture and dairy sectors. Regarding energy supplies, sources declared, 'We did not buy oil from Venezuela when sanctions were in place. Now, with sanctions lifted, we will proceed with purchases.'
Trade Could Reach $500 Billion
Sources also suggest that if the agreement is implemented, it could bring substantial economic benefits to India, with trade between the two countries potentially reaching $500 billion in the coming years. Previously, US Agriculture Minister Brooke Rollins mentioned that the agreement with India would amplify American agricultural exports into India's 'vast market,' enhancing cash flow in rural America.
Rollins stated, 'In 2024, America's agricultural trade deficit with India was $1.3 billion. India's growing population represents a significant market for US agricultural products, and today's agreement will substantially aid in reducing this deficit. This is a major victory for America First.'
India Now Among Nations with Lowest Tariffs
Following Monday's announcement, India joins the ranks of countries facing the lowest tariffs from the Trump administration. India's 18 percent tariff is less than that of Pakistan (19 percent), Indonesia (19 percent), Bangladesh (20 percent), Vietnam (20 percent), and China (34 percent).
