India‑U.S. Trade Deal Advances Amid Farmer Protest Threats and Parliamentary Turmoil
Updated (3 articles)
Deal Unveiled Excluding Agriculture and Dairy The pact was announced on Feb 2 2026 via social‑media and explicitly left out agricultural and dairy products, according to Commerce Minister Piyush Goyal’s Feb 3 briefing [3]. The United States reduced its reciprocal tariff on Indian goods from 25% to 18% and eliminated the extra 25% penalty on Russian‑oil imports [3]. India likewise cut duties on many labour‑intensive items to 18% from 50%, aiming to boost export competitiveness [2].
Tariff Cuts Target Labor‑Intensive Export Sectors Goyal emphasized that the agreement protects farm and milk sectors while unlocking “huge opportunities” for textiles, apparel, plastics, home décor, leather, gems, chemicals, rubber, machinery and aircraft components [3][2]. He linked the deal to the “Make in India” and “Design in India” initiatives, projecting accelerated MSME growth and demand for skilled workers [2]. After parliamentary disruptions, Goyal posted his full remarks on X, noting the opposition’s actions limited his delivery [2].
Congress Leader Warns of Nationwide Farmer Protests Congress senior leader Mallikarjun Kharge warned the Union Government that the trade deal could spark massive farmer protests comparable to the 2021 farm‑law backlash [1]. He argued that zero‑tariff U.S. imports and an 18% tariff on Indian exports would pit Indian farmers against American ones and “destroy” Indian agriculture [1]. Kharge also criticised the lack of parliamentary notice and the omission of farmer concerns in President Droupadi Murmu’s address, while J.P. Nadda defended the government’s economic benefits claim [1].
Parliamentary Row Limits Full Debate on Deal Opposition members disrupted Goyal’s statement in the Lok Sabha and barred Congress MP Jairam Ramesh from speaking in the Rajya Sabha, forcing the minister to hold a press briefing outside the House [2][1]. The government says technical work is ongoing and a formal declaration of the agreement will follow shortly [2]. Goyal shared the complete statement on X, highlighting that procedural steps must be completed before a full joint statement is released [2].
U.S. President Announces $500 Billion Purchase Plan President Donald Trump posted on Truth Social that India would purchase over $500 billion of U.S. energy, technology and other products, a figure Indian officials clarified would be spread over five years for data‑centre equipment, civil‑nuclear cooperation and advanced AI chips [3]. The deal also removes the 25% penalty tariff previously imposed on Russian‑oil imports [3].
Sources
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1.
The Hindu: Congress Leader Kharge Warns of Farmer Protests Over India‑U.S. Trade Deal: Kharge predicts massive farmer protests, claims the pact will “destroy” agriculture and criticises parliamentary notice, while Nadda cites government benefits .
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2.
The Hindu: India‑U.S. Trade Deal Shields Farm and Dairy Sectors, Cuts Tariffs, Sparks Parliamentary Row: Goyal asserts protection for farm and dairy, outlines tariff cuts to 18%, links deal to MSME growth, and notes opposition disruption and X posting .
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3.
The Hindu: India‑U.S. Trade Deal Excludes Agriculture, Lowers U.S. Tariffs, and Promises Broad Export Gains: Announces exclusion of agri‑dairy items, details U.S. tariff reduction to 18% and penalty removal, cites Trump’s $500 bn claim, and describes pending technical steps .
Timeline
2021 – Massive farmer protests erupt against India’s farm laws, establishing a recent precedent that opposition leaders cite when warning about new trade‑related reforms [2].
Feb 2, 2026 – India and the United States announce a bilateral trade pact on social media, explicitly excluding agriculture and dairy products to keep those sensitive sectors protected [3].
Feb 2, 2026 – The agreement lowers the U.S. reciprocal tariff on Indian goods from 25% to 18% and removes the extra 25% penalty tariff tied to Russian‑oil imports, expanding market access for Indian exporters [3].
Feb 2, 2026 – President Donald Trump posts that India will buy over $500 billion of U.S. energy, technology and AI chips; Indian officials clarify the sum will be spread over five years for data‑centre equipment, civil‑nuclear cooperation and advanced AI chips [3].
Feb 3, 2026 – Commerce Minister Piyush Goyal tells reporters the pact protects agriculture and dairy while opening huge export opportunities for labour‑intensive sectors such as textiles, apparel, plastics, home décor, leather, gems, chemicals, rubber, machinery and aircraft components [3].
Feb 3, 2026 – Goyal blames the Rahul Gandhi‑led Congress, DMK, Trinamool and SP for “insulting” the Speaker, forcing the government to announce the deal outside Parliament rather than on the floor, highlighting heightened parliamentary tensions [3].
Feb 3, 2026 – Goyal says the deal is in its final‑stage detailing; once the joint understanding is inked and technical steps completed, a full statement will be released, indicating pending procedural work [3].
Feb 4, 2026 – In the Lok Sabha, Goyal declares that the India‑U.S. trade agreement fully protects the farm and milk sectors, a key reassurance for domestic producers amid liberalisation pressures [1].
Feb 4, 2026 – Goyal announces that tariffs on labour‑intensive goods fall to 18% from 50%, a steep reduction expected to boost Indian exports in those sectors [1].
Feb 4, 2026 – He links the pact to “Make in India” and “Design in India,” saying it will spur self‑reliance and create opportunities for MSMEs and skilled workers [1].
Feb 4, 2026 – Goyal notes that technical work continues and a formal declaration of the deal will follow shortly, signalling an imminent official rollout [1].
Feb 4, 2026 – Opposition members disrupt Goyal’s statement, prompting him to post his full remarks on X, underscoring the contentious parliamentary atmosphere [1].
Feb 4, 2026 – Congress leader Rahul Kharge warns that the deal could trigger massive farmer protests comparable to the 2021 backlash, claiming it will “destroy” Indian agriculture by pitting farmers against U.S. producers [2].
Feb 4, 2026 – Kharge alleges the agreement imposes zero‑tariff U.S. imports and an 18% tariff on Indian exports, benefitting U.S. farmers per Secretary Brooke Rollins, and criticises the lack of parliamentary notice and the President’s omission of farmer and labour concerns [2].
Feb 4, 2026 – Leader of the House J.P. Nadda rebuts Kharge, citing Goyal’s claim that the pact benefits all sections of society and highlighting India’s recent security and economic achievements [2].
Feb 4, 2026 – Actor‑MP Kamal Haasan, in his maiden Rajya Sabha speech, warns that the Special Intensive Revision of the electoral roll could erase up to one crore voters in Tamil Nadu, framing it as a “living dead” disease [2].
2026 (ongoing) – India plans to implement the $500 billion U.S. purchase programme over a five‑year period, focusing on data‑centre equipment, civil‑nuclear cooperation and advanced AI chips, indicating a long‑term strategic partnership [3].
2026 (near‑future) – The full joint statement and remaining technical steps for the India‑U.S. trade deal are expected to be completed soon, after which the agreement will be formally declared and operationalised [1].