New Delhi, Feb 7 (.) Commerce and Industry Minister Piyush Goyal on Saturday said the interim trade agreement between India and the United States marks a significant breakthrough, offering fresh opportunities for Indian exporters while fully safeguarding the interests of farmers and sensitive sectors.
Addressing a press conference on the India-US Joint Statement, Goyal said the reciprocal tariff imposed by the US has been sharply reduced from 50 pc to 18 pc, a level lower than that faced by several neighbouring countries. He said the reduction would provide substantial relief to Indian exporters and strengthen India’s growth trajectory.
“The deal brings new hopes and opportunities in India’s growth story,” the minister said. Goyal said agricultural products from Indian farmers will be exported to the US at zero duty, while no tariff concessions have been extended to US agricultural products entering India. He also underlined that the agreement clearly prohibits the import of genetically modified (GM) food into India.
“I can state categorically and without any hesitation that India’s farmers, MSMEs, artisans and craftsmen will not suffer any loss. On the contrary, India will benefit from greater access to the US market,” he said. The minister said the agreement would provide a major boost to labour-intensive sectors such as textiles and apparel, leather and footwear, toys, and gems and jewellery.
He added that scaling up exports from these sectors to the US would create lakhs of jobs, particularly for women and youth, while strengthening domestic manufacturing. Goyal further said tariffs will be reduced to zero on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts, enhancing India’s export competitiveness and supporting the Make in India initiative.
India will also receive exemptions under Section 232 on aircraft parts, tariff rate quotas on auto parts, and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains. Other products set to benefit include spices, tea, coffee, coconut oil, cashew nuts, and several fruits and vegetables such as avocado, banana, mango, pineapple and mushrooms, along with select bakery products.
Calling the agreement historic, Goyal said discussions between Prime Minister Narendra Modi and US President Donald Trump, which began in February 2025, culminated in a breakthrough that would be remembered as a landmark moment for Indian trade.
“This day will be written in golden letters, as a USD 30 trillion economy has now opened its doors wider for Indian exporters,” he said. Goyal said the agreement reflects the shared commitment of India and the US to deepen economic cooperation and promote sustainable growth.
He also reiterated that sensitive agricultural and dairy products including maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, select vegetables and meat have been fully protected to safeguard farmers’ interests and rural livelihoods. India and the US said in a joint statement that they have reached a framework for an interim agreement on reciprocal and mutually beneficial trade and agreed on its terms.
The breakthrough followed a phone call between Prime Minister Modi and President Trump on February 2, which led to the conclusion of negotiations on the long-pending trade deal. The Trump administration had earlier imposed tariffs on major exporters to the US, including India and China.
The Bilateral Trade Agreement (BTA), formally proposed in February 2025, aims to more than double India-US bilateral trade from the current USD 191 billion to USD 500 billion by 2030.
. VK PPP .