Indian Commerce Minister clarifies India-US trade agreement

February 6, 2026

When US President Donald Trump announced that a trade understanding had been reached between India and the United States, and that the total tariffs imposed on India would be reduced from 50 percent to 18 percent, along with the condition that India would not buy oil from Russia, it sparked an uproar both inside and outside the Indian Parliament.

Opposition parties questioned why a joint statement on the agreement had not been released and why Trump was speaking alone, and why India had not yet clarified its position. The opposition even alleged that India had compromised its agricultural interests by entering into a trade agreement with the US. However, Union Commerce Minister Piyush Goyal, on behalf of the Indian government, issued a clear statement regarding the trade deal, addressing all the questions. Emphasizing that national and commercial interests were paramount, Piyush Goyal stated that a deal had been reached, but representatives from India and the US were currently finalizing the details.

A joint statement would be issued accordingly. He also clarified that there had been no compromise on the interests of the agriculture and dairy sectors. The interests of our farmers are paramount. The Trump administration is working on formalizing the trade agreement in writing. Piyush Goyal also said that the formalities are in the final stages, and the final statement will be released very soon after the completion of the final agreement and technical procedures. This trade agreement will bring many benefits to our country, including increased exports, technology transfer, expansion of global supply chains, creation of millions of jobs, and new investments in labor-intensive sectors. In addition to agriculture and dairy, the fisheries sector has also been kept open.

This will provide incentives in the fisheries sector and create new employment opportunities for the poor, farmers, and youth. Regarding the opposition, he said that they should not diminish the importance of this deal with their negative thinking. According to the agreement, while the US will increase its purchases from India in sectors ranging from textiles to pharmaceuticals, India will buy petroleum, defense equipment, electronics and telecommunications products, and aircraft from the US. This will lead to increased trade between India and the US. Even if it doesn’t reach the declared level of $500 billion, it will gradually increase.

This will reduce the depreciation of the rupee against the dollar. The question arises: why is Trump the one providing all the information, especially regarding India’s oil purchases? Goyal responded that since Trump imposed the sanctions, it is only natural that he would also provide the clarification regarding their removal. Meanwhile, information has come from Russia that it has not received any message from India regarding stopping oil purchases.

The Russian government spokesperson said that Russia will maintain its relations with India. This is also a correct approach.Trade experts say that along with trade deals with Europe and America, India should also maintain its trade relations with Russia because Russia has stood by India in every difficult time. Statistics show that until 2025, India was buying 2 million barrels of crude oil per day from Russia.

In December, this decreased to 1.21 million barrels per day. Now in January, it is 1.1 million barrels per day. Earlier, India was the second largest buyer of oil from Russia, but this position has now declined. The clear statement from the Commerce Minister on the trade deal dispels the confusion and presents a bright picture of Indian foreign trade to the public.