New Delhi: Union Commerce and Industry Minister Piyush Goyal on Saturday said the India–US trade framework would open a major new market for Indian agricultural products while firmly protecting domestic farmers by offering no tariff concessions on agricultural imports from the United States.
Briefing the media on the India–US Joint Statement, Goyal said agricultural produce from India will be exported to the US at zero duty, significantly enhancing market access for Indian farmers. At the same time, he clarified that agricultural goods from the US will not receive any tariff relief for entry into the Indian market.
The Minister said the agreement strikes a careful balance between export expansion and domestic protection. “Indian farmers will benefit from wider access to the US market, while India’s agricultural sector remains fully safeguarded. No concessions have been granted on agricultural imports from the US,” he said.
Goyal also highlighted that the reciprocal tariff imposed by the US on Indian goods has been reduced from 50 per cent to 18 per cent, a move he said would substantially support Indian exporters and make them more competitive globally.
Calling the framework a boost to India’s growth story, the Minister said MSMEs, artisans and labour-intensive industries would see significant gains. Sectors such as textiles and apparel, leather and footwear, toys, and gems and jewellery are expected to scale up exports, leading to job creation and stronger domestic manufacturing.
He further said tariffs would be brought down to zero on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts. India will also receive exemptions under Section 232 for aircraft components, tariff-rate quotas for auto parts, and negotiated outcomes for generic medicines, resulting in tangible export benefits.
On the agricultural side, the agreement is expected to expand exports of Indian products such as spices, tea, coffee, coconut oil, cashew nuts, and several fruits and vegetables, including mango, banana, pineapple, avocado and mushrooms, along with select bakery products.
Describing the announcement as a historic milestone, Goyal said the framework was the outcome of sustained discussions between Prime Minister Narendra Modi and US President Donald Trump that began in February 2025. He said the agreement opens the doors of a USD 30 trillion economy wider for Indian exporters.
India and the United States have announced that they have reached a framework for an interim agreement on reciprocal and mutually beneficial trade. The Bilateral Trade Agreement aims to more than double bilateral trade from USD 191 billion to USD 500 billion by 2030.
