India committed to protect farmers, MSMEs in trade deals, say govt sources

New Delhi: India wants bilateral trade deals to be "equitable, fair and balanced" as the government is committed to protect the interests of farmers and MSMEs, government sources said on Monday.

The assertion comes in the backdrop of the Trump administration imposing a steep 50 per cent tariff on Indian goods, posing challenges for exporters in the key US market.

According to the sources, India wants to increase its global trade, but on equitable terms.

"Keeping in mind India's own priorities, especially our farmers, fishermen, MSME sector, dairy, particularly in these sectors, India works with a lot of sensitivity.

"Keeping all this in mind, India wants to increase bilateral trade globally. There should be reciprocity. It (trade deal) should be equitable, fair and balanced," one of the sources said.

India is also negotiating trade deals with the European Union and various countries.

The 50 per cent tariff imposed by the US includes a 25 per cent penalty for buying crude oil from Russia. On August 7, the Trump administration enforced a 25 per cent tariff on Indian goods, citing India's persistent oil imports from Russia and long-standing trade barriers.

The US accounted for about 20 per cent of India's USD 437.42 billion worth of goods exports in 2024-25.

The US has been the largest trading partner of India since 2021-22. In 2024-25, the bilateral trade in goods stood at USD 131.8 billion (USD 86.5 billion exports and USD 45.3 billion imports).

Finance Minister Nirmala Sitharaman has said the government is working on a comprehensive package to support Indian exporters impacted by the US tariff and asserted a multi-departmental engagement is underway to assess the impact on Indian shipments.