India Secures Best Trade Deal with US Among Competing Nations, Says Piyush Goyal
Commerce and Industry Minister Piyush Goyal declared on Saturday that India has achieved the most favorable trade agreement with the United States compared to other competing nations. Speaking at the Raisina Dialogue 2026 in New Delhi, Goyal emphasized the robust economic and strategic partnership between the two countries, as reported by PTI.
Strengthening Bilateral Relations
Goyal highlighted the "very powerful" relationship between India and the US, noting that the world's largest economy remains a crucial partner for New Delhi. He stated, "It has been a fantastic journey. We have the best of relations. You would have observed that through the last year, President Donald Trump has always had the best things to say about India as a country, and about Prime Minister Narendra Modi. We have fantastic relations with our counterparts there."
He acknowledged that minor misunderstandings can occur even in strong partnerships, but affirmed the enduring strength of the India-US alliance. "Even within your family, sometimes you can have one or two misunderstandings. It's a part of the course. I think it's a very, very powerful relationship that the US and India share. And we got the best deal amongst all the nations with whom we compete," Goyal added.
Strategic and Economic Significance
The minister pointed out that both nations are strategic partners and the largest democracies globally, with the US's $30 trillion economy playing a central role in world trade. "We have a large responsibility cast on both our nations. They are the world's largest economy, USD 30 trillion economy, nobody can wish them away," he remarked.
Explaining the purpose of trade agreements, Goyal said they aim to secure preferential access for a country's goods and services over competitors. "What's a trade deal? You are trying to get a preference or a preferential access for yourself, your goods, your services, compared to your competitor. And we got the best deal amongst all the competing nations. I mean whether it's in our neighbourhood Pakistan or Bangladesh. If we look at the Asian region, we got the best deal amongst all of the competitors..." he elaborated.
Beyond Trade: A Comprehensive Partnership
Goyal emphasized that the India-US collaboration extends beyond trade, encompassing technology cooperation, critical minerals, defense ties, and significant investments. "There's a huge technology overlay on it. There's a huge critical minerals partnership, there's a defense partnership, there's a huge amount of investments that flow into India from the US. So it's a partnership of two countries which is going to define the future," he stated.
Details of the Trade Agreement
His comments come as India and the US have finalized the framework for the first phase of a bilateral trade agreement. Initially, Washington planned to reduce reciprocal tariffs on India to 18 percent. However, after the US Supreme Court struck down the tariffs, President Donald Trump imposed a 10 percent tariff on all countries from February 24 for 150 days. A meeting between chief negotiators to finalize the legal text has been postponed.
Under the proposed deal, India will eliminate or reduce tariffs on US industrial goods and various American agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits. Additionally, India has indicated plans to purchase $500 billion worth of US energy products, aircraft and parts, precious metals, technology products, and coking coal over the next five years.
Defending Free Trade Agreements
Goyal also referenced the nine free trade agreements finalized by the Modi government, asserting they were negotiated without compromising domestic interests. "These nine free trade agreements, I can say on record with all the courage that I have on my command with all the responsibility that in not a single trade deal, has India compromised on any sensitivity of any of our stakeholders," he said.
Opposition parties have alleged that the government compromised farmers' interests in the India-US trade pact, but Goyal defended the agreements. He explained that opening the auto sector under certain FTAs would expand consumer choice and create jobs. "Demand for this industry is growing at an average of 8 percent. So you can imagine how much more scope we have to create jobs," he noted.
He added that while companies from FTA partner countries might initially export cars to test the Indian market, they would eventually need to manufacture locally once demand is established. "Initially they can sell, say, 5,000 cars or 10,000 cars, to test the market, find the distraction -- and then come and manufacture here," Goyal said.
The government's broader goal is to build a global network of trade partnerships through multiple FTAs, reinforcing India's position in the international economic landscape.
