Government sources in New Delhi have firmly stated there will be no compromise on farmers' interests amid the newly finalised India-US trade pact. Sensitive sectors such as agriculture and dairy remain fully protected, with key safeguards intact despite expanded market access for other goods.

The landmark agreement follows a phone call on Monday between Prime Minister Narendra Modi and US President Donald Trump. Trump announced that Washington would slash reciprocal tariffs on Indian goods from 25 per cent to 18 per cent, boosting Indian exports and easing long-standing trade frictions.

A key element of the pact involves India's commitment to purchase Venezuelan crude oil. Sources clarified that these energy deals will proceed from countries not under international sanctions, at prevailing market rates. "We did not buy from Venezuela when sanctions were in place. Now that sanctions are lifted, we will buy," they emphasised.

This shift aligns with Trump's recent comments. Just days ago, he noted that India would opt for Venezuelan oil over Iranian crude, stating, "We have already made the concept of the deal." The move reflects India's pragmatic approach to securing affordable energy supplies amid global volatility.

Prime Minister Modi hailed the pact as creating a "favourable economic environment." He credited the government's consistent, measured strategy in global trade negotiations, which has navigated complex geopolitical pressures to deliver tangible gains.

The deal promises substantial economic benefits. Bilateral trade could surge towards a $500 billion target in the coming years, fostering deeper economic ties while prioritising domestic sectors. More implementation details will emerge as the framework solidifies.

This agreement marks a dramatic turnaround. It comes nearly a year after ties hit a low point, triggered by Trump's imposition of 50 per cent tariffs on Indian goods—among the steepest against any major partner—over New Delhi's purchases of Russian oil.

Those tariffs cast a shadow over economic and strategic cooperation. They disrupted supply chains and heightened tensions, but persistent diplomacy has now paved the way for reconciliation and mutual growth.

India's energy strategy remains flexible and sanction-compliant. By sourcing Venezuelan oil post-sanctions, New Delhi diversifies imports, reduces reliance on pricier alternatives, and supports energy security without geopolitical entanglements.

For farmers and dairy producers, protections are non-negotiable. Government sources reiterated that agricultural sensitivities will not be traded away, ensuring livelihoods remain shielded even as industrial exports gain from lower US tariffs.

The pact underscores broader US-India alignment. It balances trade liberalisation with strategic autonomy, positioning both nations for enhanced collaboration in a multipolar world.

Analysts view this as a win-win. India secures tariff relief and energy options, while the US regains leverage in global energy markets and counters rivals through economic partnerships.

Implementation will be key. Stakeholders await specifics on timelines, exempted sectors, and enforcement mechanisms to translate announcements into on-ground realities.

As details unfold, the agreement signals renewed optimism. It exemplifies how measured diplomacy can resolve flashpoints, paving the way for ambitious trade ambitions.

Based On NDTV Report