The US trade deal addresses dairy and agricultural concerns, the administration tells Parliament.

On Wednesday, Union Commerce Minister Piyush Goyal gave the Parliament a briefing on the recently announced and eagerly anticipated trade agreement with the United States, which only came to pass amid tariff tension and after months of back and forth. Speaking in the Lok Sabha in the face of opposition MPs’ complaints, Goyal gave assurances that New Delhi has been successful in protecting delicate industries like dairy and agriculture. According to Goyal, it took a year for the two parties to reach an agreement that ensured neither of their significant industries was overlooked.

“Last year, negotiators from both sides held detailed discussions on various levels. Keeping the important interests of both sides in mind, it is natural that both sides would want to safeguard their respective important and sensitive areas and ensure the best possible results. During the discussions, the Indian side was successful in protecting the interests of its sensitive sectors, especially agriculture and dairy…With a year of discussions, the two sides succeeded in giving the final form to various sectors of the bilateral trade agreement,” the Union Minister said in Lok Sabha.

US President Donald Trump declared on Monday that he will reduce reciprocal tariffs on India from 25% to 18% as part of a trade agreement between the two countries. The announcement that India has committed to purchasing over USD 500 billion worth of goods, particularly agricultural ones, attracted notice right away. India is a major role in many important areas of agricultural production worldwide, therefore the pledge sparked discussion and prompted scathing criticism from the opposition. Rahul Gandhi, a Congress MP and LoP, charged that Prime Minister Narendra Modi had sold the country off.

The ‘buy American’ USD 500 billion pledge that Trump made has only sparked doubts about its scope, timing, and legitimacy; the Indian side has not yet responded.

Farmers’ interests, one of the primary grounds of dispute between the two sides that caused the trade pact talks to be delayed, are still protected, according to government sources. They emphasized that under the historic deal, strategic energy purchases, such as crude oil from Venezuela, might be a highlight. Apart from Brazil, Trump had levied the biggest tariffs—50%—on India, which included a fine for purchasing Russian oil. They claimed that Moscow was using India’s imports to support its conflict with Ukraine. The animosity between Washington, DC, and New Delhi persisted despite India repeatedly rejecting the accusations. This was a major factor in the lengthy delay in reaching a trade agreement. Trump claimed to have spoken with Prime Minister Modi before announcing the trade agreement on Truth Social. On behalf of Indians, the 75-year-old Indian premier congratulated the US President and emphasized that “Made in India” goods will now be subject to a lower tariff.