Commerce Minister Piyush Goyal responds to Trump: India will protect the interest of farmers, labourers, MSMEs

Piyush Goyal, the Union Minister of Commerce and Industry, told the members of the Lok Sabha on Thursday that the government is taking all the necessary steps to protect the interests of farmers, labourers, MSMEs and other key stakeholders—and is currently assessing the situation and taking feedback from exporters—amid the Opposition rebuking the government for a ‘diplomatic failure’ after U.S. President Donald Trump said that India will be imposed with a 25% tariff.

The minister, who has played a critical role in the rounds of negotiations that have taken place with the U.S. thus far, also said that the government will take all the necessary steps to protect and promote its national interests. Goyal began his address—which he gave to both houses of the Parliament—that India has held five rounds of discussions with the U.S. on the India–U.S. bilateral agreement since April, along with multiple virtual meetings.

He also highlighted that within less than a decade, India has emerged as the fastest-growing economy from one of the ‘Fragile Five’. “We have emerged from the eleventh largest economy to one of the top five economies of the world. It is also expected that we will become the third-largest economy in the world in a few years,” Goyal said, adding that India’s contribution to global growth is almost 16%, amid heated sloganeering and disapproval from the Opposition benches. The Opposition has alleged that Trump’s announcement is reflective of the unbecoming of the five rounds of talks that the Indian government had with its counterparts in the U.S.

Goyal also said that economic institutions and economists across the world have started to see India as a bright spot. “Our exports have increased in 11 years. In an increasingly protectionist world, India has signed beneficial trade agreements with the UAE, the UK, and Australia. We are committed to more such bilateral agreements with other nations,” he said. The minister also highlighted that the government has taken sweeping reforms in the past 11 years to promote India as the manufacturing hub of the world, and the government will continue to take proactive measures towards its Viksit Bharat 2047 vision.

Last night, in response to Trump’s statement, the government said that India remains committed to achieving a “fair, balanced, and mutually beneficial” trade agreement with the U.S. Despite Trump’s acknowledgement that India is a “friend” of the U.S., he said India will pay, in addition to the tariff of 25%, a “penalty” for indulging in business with Russia in areas of energy and military equipment.