India–US trade agreement to include an 18 percent reciprocal tariff

Government sources said India has protected its price-sensitive agriculture, dairy, and fisheries sectors from US imports. Commerce Minister Piyush Goyal said on Thursday that India and the United States will sign the trade deal by mid-March. Under the agreement, the US will reduce reciprocal tariffs to 18 per cent. India will also stop buying oil from Russia and commit to purchasing USD 500 billion worth of energy and technology products from the US. Goyal added that both sides will issue a joint statement within five days, though he did not share its details.

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Key Sectors Shielded, Opposition Seeks Clarity

Sources said India has ensured strong protection for farmers and the dairy and fisheries sectors. These areas employ crores of people and remain highly price-sensitive. The government made it clear that opening these sectors to US exports was not an option. Officials also pointed out that India signed trade deals in 2025 with Oman, the UK, New Zealand, and the EU without giving similar concessions.

US President Donald Trump announced the agreement earlier this week on social media. The deal is seen as a step toward a broader trade pact. Both countries expect bilateral trade to reach USD 500 billion by 2030. The opposition has questioned the lack of details and raised concerns in Parliament. Despite disruptions, Goyal said the deal would boost domestic manufacturing and help MSMEs. He also noted that India will face lower tariffs than other major US trading partners.

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