New Delhi, Feb 7 (.) Commerce and Industry Minister Piyush Goyal said on Saturday that India has reached a landmark framework for an interim trade agreement with the United States, a move expected to open a USD 30 trillion market for Indian exporters.

India has reached a framework for an Interim Trade Agreement with the United States that will lower tariffs, expand market access and deepen economic cooperation, the government said on Friday, describing the move as a major boost for exporters, job creation and manufacturing.

Piyush Goyal said the agreement would open access to the $30 trillion US market, with significant benefits for micro, small and medium enterprises (MSMEs), farmers and fishermen.

“Under the decisive leadership of PM Narendra Modi ji, India has reached a framework for an Interim Agreement with the US. This will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen. The increase in exports will create lakhs of new job opportunities for our women and youth,” Goyal said.

As part of the framework, the United States will reduce reciprocal tariffs on Indian goods to 18%, creating new opportunities in several labour-intensive and manufacturing sectors, he said.

“As part of this framework, the US will slash reciprocal tariffs on Indian goods to 18%, providing a huge market opportunity in key sectors such as textiles & apparel, leather & footwear, plastic & rubber products, organic chemicals, home décor, artisanal products, and select machinery in the world’s largest economy,” Goyal said.

He added that tariffs would be eliminated entirely on a range of key Indian exports.

“Additionally, tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thereby further enhancing India’s export competitiveness and Make in India,” he said.

India will also receive relief under U.S. national security-related trade measures, including exemptions and negotiated outcomes in key sectors.

“India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors,” Goyal said.

At the same time, the agreement protects India’s sensitive agricultural and dairy sectors, the minister said.

“At the same time, the Agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables, meat, etc.,” he said.

Goyal said the framework would help both countries deepen cooperation and sustain long-term growth.

“This agreement will help India and the US remain focused on working together to further deepen economic cooperation, reflecting shared commitment to sustainable growth for our people and businesses. Towards realising Viksit Bharat !” he said.

Separately, the United States and India issued a joint statement confirming that the two countries had reached a framework for an Interim Agreement on reciprocal and mutually beneficial trade.

“The United States of America (United States) and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement),” the statement said.

The framework reaffirms both sides’ commitment to broader negotiations on a US-India Bilateral Trade Agreement (BTA), launched by US President Donald J. Trump and Indian Prime Minister Narendra Modi on February 13, 2025.

“Today’s framework reaffirms the countries’ commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains,” the statement said.

The Interim Agreement will mark a significant milestone in bilateral relations, it added.

“The Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes,” the joint statement said.

Under the agreement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of U.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.

The United States will apply a reciprocal tariff rate of 18% on Indian-origin goods, including textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal products and certain machinery. Subject to the successful conclusion of the Interim Agreement, the U.S. will remove reciprocal tariffs on goods such as generic pharmaceuticals, gems and diamonds, and aircraft parts.

The US will also remove tariffs on certain Indian aircraft and aircraft parts imposed under national security-related proclamations on aluminium, steel and copper. India, in turn, will receive a preferential tariff rate quota for automotive parts, consistent with U.S. national security requirements.

Contingent on the findings of a US Section 232 investigation, India will receive negotiated outcomes for generic pharmaceuticals and pharmaceutical ingredients.

The two countries committed to granting each other preferential market access in sectors of mutual interest, establishing rules of origin, addressing non-tariff barriers, and enhancing cooperation on standards and conformity assessment procedures.

The statement also outlined cooperation on economic security, including supply chain resilience, export controls and investment reviews, as well as efforts to counter non-market policies of third parties.

India also said it intends to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years. Both sides committed to expanding trade in technology products, including graphics processing units (GPUs), and to developing digital trade rules under the BTA.

The United States and India said they would promptly implement the framework and work toward finalising the Interim Agreement, with the goal of concluding a comprehensive and mutually beneficial Bilateral Trade Agreement in line with the agreed roadmap.

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