Goyal urges exporters and industry bodies to take full advantage of FTAs

Commerce Minister Piyush Goyal urges exporters to leverage new FTAs with developed nations as India finalises trade deals with the US and EU

Commerce and Industry Minister Piyush Goyal on Wednesday urged exporters and industry bodies to take full advantage of the series of free trade agreements (FTAs) signed with developed countries.

 

Goyal said the government had signed FTAs with developed countries to help India’s farmers, workers, professionals, artisans and MSMEs take advantage of the global market with preferential access.

 

“Industry must now intensify its efforts to penetrate new markets, upgrade quality and become more competitive to take maximum advantage of trade agreements. India has made its mark in international trade since the ancient era. Our trade deals will accelerate our Viksit Bharat 2027 mission and carry forward Prime Minister Narendra Modi’s mantra of ‘Vikas bhi, Virasat bhi’,” Goyal said at a meeting with export promotion councils (EPCs) and industry bodies.

 

The minister met 35 EPCs and key industry associations representing India’s major export sectors. The meeting took place against the backdrop of India finalising trade deals with two key trade partners — the European Union (EU) and the United States (US) — over the last two weeks.

 

On Saturday, India and the US issued a joint statement regarding the interim trade deal, with Washington agreeing to cut tariffs from 50 per cent to 18 per cent.

 

As of February 7, Washington has removed the additional 25 per cent import duty on imports from India. The punitive tariff was imposed in August last year for India’s purchase of Russian oil. The existing 25 per cent reciprocal tariff will be further reduced to 18 per cent once it is notified by the United States Trade Representative (USTR).

 

The timing of the finalisation of the deal is critical for some of these sectors as contracts had started coming under pressure due to lack of relief from steep tariffs. The US is also India’s largest export destination. During the financial year 2024-25, India exported goods worth $86.5 billion to the US, while importing goods worth $45.6 billion.

 

Despite the disruption, merchandise exports have remained in positive territory during the first nine months of the current fiscal. During April–December, India exported goods worth $330.29 billion, as compared to $330.41 billion during the same period a year ago.

 

The trade agreement is expected to improve export competitiveness of labour-intensive sectors, including textiles, plastics, apparel, home décor, leather and footwear, gems and jewellery, organic chemicals, rubber goods, machinery and aircraft components, as duties will be substantially reduced to 18 per cent from 50 per cent. These exports comprise over a third of India’s exports to the US.

 

The steep 50 per cent tariff on 55 per cent of India’s outbound shipments to the US was making Indian exports uncompetitive. The reduction in tariff will bring India at par with its regional competitors such as Vietnam, Indonesia, Malaysia, Thailand, Cambodia and Bangladesh. These countries are also India’s key competitors in labour-intensive sectors.

 

“Particular appreciation was expressed for the elimination of the additional 25 per cent tariff on Indian imports to the United States, as terminated through the United States Executive Order dated February 6, 2026, which is expected to restore competitive market access for Indian exports. Industry noted that the United States is among India’s largest export destinations and that the tariff relief provides significant stability and renewed competitiveness to Indian exporters,” an official statement said.