Union Commerce Minister Piyush Goyal hailed the India–US interim trade deal as historic, saying reduced tariffs and zero-duty access for several products will boost exports and create new opportunities. He stressed farmers, dairy, and agriculture interests remain protected, while select US goods receive limited concessions.
India–US Interim Trade Pact Brings Zero Duty for Several Products
New Delhi: Union Commerce Minister Piyush Goyal described the interim trade agreement between India and the United States as a historic step. He said that this day will be written in golden letters in India's journey towards becoming a developed nation. The bilateral trade talks, which began in February 2025, aimed to achieve annual trade of $500 billion between the two countries, and now appear to be moving in a new direction.
Goyal assured that this agreement does not compromise the interests of Indian farmers, the dairy sector, or agriculture. He said that the government prioritized the protection of farmers in every decision. He said that some people are trying to spread confusion in the name of farmers, but no steps have been taken in this agreement that are against their interests.
The Minister explained that previously, the US imposed a reciprocal tariff of up to 50% on Indian exports, which has now been reduced to 18%. This rate is said to be lower than that of India's competitors such as China, Vietnam, Bangladesh, and Indonesia. They say this will significantly benefit Indian exporters, and many Indian products will also be subject to zero tariffs in the US.
According to Goyal, certain products, such as fruits, vegetables, tea, and coffee, will be exempt from reciprocal tariffs in the US. This is expected to provide new opportunities for small exporters, artisans, and agricultural businesses. Citing the example of an artisan from Sambhal, Uttar Pradesh, he said that the tariff reduction will open up new orders and avenues for growth.
India, US reach interim trade deal to cut tariffs and boost market access; Full details here
Under the agreement, India has provided limited tariff concessions to the US in certain sectors such as alcoholic beverages, cosmetics, and medical devices. Minimum import prices have also been set for certain products to ensure domestic industry is not affected.
Piyush Goyal said that this agreement brings new hope, enthusiasm, and opportunities to every Indian. According to him, better access to the market of America, the world's largest economy, will open new avenues for India's exports, industry and employment, which will strengthen the goal of a developed India by 2047.
