New Delhi/Washington: India’s Commerce and Industry Minister Piyush Goyal chose silence when journalists asked about Russian oil. The moment came during a press briefing on the newly announced interim trade arrangement between New Delhi and Washington. Reporters pressed for clarity, but the minister stepped back. He said that the matter belonged to the Ministry of External Affairs (MEA), but did not elaborate.
Days earlier, Minister of External Affairs S. Jaishankar had also avoided specifics. He said the negotiations were not handled directly by him and pointed to discussions led by Goyal. He referred to conversations between Prime Minister Narendra Modi and US President Donald Trump.
The trade agreement between India and the United States was announced by President Donald Trump on Truth Social. He said the two countries had reached an interim deal, explaining that the tariffs on Indian goods would fall to 18 percent. He said the additional duty imposed over India’s purchase of Russian oil would be removed. He also claimed India had agreed to large-scale purchases of American goods worth $500 billion.
Claiming that India would buy crude oil from Venezuela, he said New Delhi would slowly remove tariffs on goods coming from the United States.
Goyal later shared India’s official position on social media, calling the deal a basic framework for trade that would benefit both countries. He said it would open markets in the future and supply chains would become stronger.
As per the deal, India will reduce or eliminate tariffs on a wide range of American industrial goods and agricultural products. The list covers feed products such as dried distillers grains. It includes red sorghum used for animal nutrition, tree nuts, fresh fruits and processed fruit items. Soybean oil is also part of the list. Wine and alcoholic beverages are included as well. Many other agricultural products will receive the same tariff relief.
Government briefings say India will buy more goods from the United States over the next five years. The total value could reach about $500 billion. Energy products will make up a big share of these purchases. India will also buy aircraft and aviation parts. Precious metals are part of the plan. Technology products are included too. Coking coal will also be bought in large quantities over the long term.
India will also address regulatory frictions. Medical devices face easier entry. Information and communication technology goods receive smoother clearances. Agricultural imports see fewer non-tariff barriers. Import licensing procedures move toward simplification.
On the American side, Washington will apply an 18 percent reciprocal tariff on Indian goods under an executive order framework dated April 2, 2025. The duty covers textiles and apparel. Leather and footwear exports fall under the slab. Plastic and rubber products are included. Biochemical goods, handicrafts, home décor items and select machinery products also face the tariff line.
The interim phase leaves room for relief later. Once the arrangement reaches completion, the United States plans to remove duties on several Indian exports. Generic medicines stand to gain. Diamonds and jewellery shipments receive concessions. Aircraft and aviation components enter the relief category. Some aerospace tariffs linked to national security rules tied to metals will be withdrawn.
India will also receive preferential tariff quotas in the automobile and auto parts segment under security-linked trade provisions. Ongoing American investigations into pharmaceutical imports may decide additional benefits for Indian generic drug makers.
Both countries intend to open targeted market access in sectors of shared commercial interest. The mechanism aims for durability. Safeguards will ensure that benefits flow primarily to the two partners. Technical standards and testing procedures will move toward alignment. Any tariff revision by one side may trigger proportionate responses from the other. Negotiators plan to deepen market access under a future bilateral trade pact.
Technology trade forms another pillar. Advanced computing hardware such as GPUs used in data centres will see expanded commercial exchange. Joint technology collaboration will also grow. Digital trade rules will move toward transparency. Both sides want to remove discriminatory digital barriers. Implementation timelines are expected soon. The interim arrangement will evolve into a broader and balanced bilateral agreement.
Trade analysts are studying the agricultural implications. Some fear pressure on India’s minimum support price system and public procurement model. Researchers point to the political sensitivity of staple crops. Dairy, rice and wheat are central to rural livelihoods. Millions depend on these sectors for income stability.
Strategic observers are also watching defence and energy linkages. Large procurement commitments may extend beyond fuel. Commercial purchases could include aircraft, helicopters and even nuclear reactors. Trump’s reference to $500 billion in buying has amplified that speculation. Defence orders could form a sizeable share.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
