Union Commerce Minister Piyush Goyal hailed the announcement of the interim framework of the India–US trade agreement as a landmark moment, saying the day would be “etched in golden letters” in India’s economic history.
Addressing a press conference on Saturday, Goyal said the development marked a crucial step in India’s journey towards becoming a developed nation, recalling that discussions for the agreement were initiated by Prime Minister Narendra Modi and the US President in February 2025.
Assuring that the interests of Indian farmers remain protected under the pact, Goyal highlighted that US tariffs on Indian exports have been reduced from 50 per cent to 18 per cent, effectively opening access to a USD 30 trillion economy for Indian exporters. He said the move would significantly benefit exporters across sectors while safeguarding key domestic interests.
Highlighting the key achievement of the deal, Piyush Goyal said, “A USD 30 trillion economy is now open to our exporters. This joint statement gives every Indian citizen an opportunity for new hope, enthusiasm, and new resolutions. The 50 per cent tariff that Indian exporters faced will now be only 18 per cent. We will have the lowest tariffs compared to our neighbouring countries. Exporters of gems and pharmaceuticals will face zero duty in the US.”
Assuring the benefits to Indian farmers, Piyush Goyal said, “I can say with absolute certainty that the farmers, MSMEs, artisans, and craftsmen of India will not suffer any kind of loss.”
“Considering how the interests of our farmers have been protected, the interests of farmers and the dairy sector have been protected. I believe that the joint statement between the United States and India, which was finalised late last night and presented to the world, has been welcomed in every corner of the country. Even this morning, I was watching a video. A simple artisan from Sambhal in Uttar Pradesh, working in the handicrafts sector, was saying, “Now the tariff is eighteen percent. Now we’re in luck, we’ll benefit greatly.
New orders will come in, and there will be progress.” These were his words, which I heard this morning on an X handle from a journalist who had interviewed him…Under this agreement, the reciprocal tariff of fifty percent that was levied on Indian exports to the US will now be reduced from fifty percent to just eighteen percent. Eighteen percent is lower than the tariffs imposed by all our neighboring countries and other countries with whom we compete, and this will greatly benefit us and our exporters in the coming days,” the Minister added.
India and the US announced a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. The joint statement said that the framework reaffirms the countries’ commitment to the broader Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.
The United States will also remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats, the joint statement said.
According to the statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of S food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
India also intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.
(With ANI Inputs)
Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
