Union Commerce Minister Piyush Goyal on Saturday said the newly signed India-US trade deal will open a $30 trillion market for Indian exporters, particularly benefiting MSMEs, farmers, and fishermen, while also protecting farmers’ interests.
Posting on X, Goyal noted that the agreement is expected to create lakhs of new jobs for women and youth. He said the framework for the interim agreement was achieved under the leadership of Prime Minister Narendra Modi and will significantly boost India’s export potential.
Under the deal, the US will reduce tariffs on Indian goods from 50% to 18%, creating opportunities in key sectors such as textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal products, and select machinery. Tariffs on several items, including generic pharmaceuticals, gems and diamonds, and aircraft parts, will be reduced to zero, further enhancing India’s global competitiveness and supporting Make in India initiatives.
The agreement also provides exemptions under Section 232 for aircraft parts, tariff rate quotas on auto parts, and negotiated terms for generic pharmaceuticals, which are expected to generate tangible export gains.
Goyal emphasized that the deal safeguards Indian farmers by fully protecting sensitive agricultural and dairy products such as maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, certain vegetables, and meat, ensuring rural livelihoods remain secure.
He added that the interim agreement strengthens India-US economic cooperation and reflects a shared commitment to sustainable growth, contributing to the goal of Viksit Bharat.
The framework was jointly announced by India and the United States on Friday, marking a key step toward a broader bilateral trade agreement that began under discussions between President Donald Trump and Prime Minister Narendra Modi in February 2025, according to a statement from the White House and India’s Commerce Ministry.
