Goyal Says India‑US Trade Deal Shields Agri, Dairy Sectors

February 4, 2026

Union Commerce and Industry Minister Piyush Goyal on Wednesday addressed the Lok Sabha to defend India’s newly announced India‑US trade deal, asserting that it fully protects sensitive sectors like agriculture and dairy. His remarks came against the backdrop of vociferous protests and slogan‑shouting by Opposition MPs, which disrupted proceedings in the Lower House.

Sensitive Sectors Safeguarded, Says Minister

Goyal stressed that India has successfully protected its key agricultural and dairy interests in the pact negotiated with the United States. He told MPs that the agreement reflects a balance between opening markets and safeguarding domestic priorities, and that farmers and dairy producers would not be compromised.

The Minister said the trade deal aligns with national economic initiatives like Viksit Bharat and Atmanirbhar Bharat, and will support Indian exporters while ensuring that core sensitivities are taken into account.

Tariff Reduction and Export Opportunities

Goyal highlighted that the United States has agreed to reduce tariffs on Indian goods to 18 per cent, down from significantly higher levels a move he described as favorable compared to tariffs faced by other competitor nations. He added that this will create enhanced opportunities for labor-intensive sectors, MSMEs, and exporters in sectors such as textiles, engineering goods and more.

While some technical details of the pact are yet to be finalized and a joint statement is expected soon, the minister reiterated that India has maintained its sovereign right to protect sensitive segments of the economy throughout negotiations.

Opposition Walkout and Parliamentary Row

Goyal’s speech was marked by a parliamentary row, with Opposition members displaying banners and chanting slogans, leading to an adjournment of the Lok Sabha shortly after his address. The Opposition has voiced concerns that the deal could impact domestic sectors, particularly agriculture, and demanded clearer details on its actual terms.

Government’s Broader Trade Perspective

In his statement, the minister also linked the trade deal to wider global economic engagement, saying it would help integrate Indian MSMEs into global supply chains and promote key government initiatives like Make in India and innovation‑driven growth.

Goyal further highlighted the importance of energy security and other strategic priorities alongside trade, underscoring the government’s claim that the agreement serves India’s national interest without undermining domestic protections.

Economic and Policy Implications

While government officials argue that sensitive sectors have been shielded, critics including some farmer groups and Opposition leaders have raised questions about potential long‑term impacts on agriculture, dairy and rural livelihoods if U.S. imports increase under the new arrangement. They are calling for greater transparency and safeguards as the agreement moves toward formalization.