Trade pact opens $30 trn US market; safeguards key sectors, farmers: Goyal

Commerce and Industry Minister Piyush Goyal said that the framework is expected to create jobs and MSME exports while keeping staple crops and dairy outside tariff concessions

Commerce and Industry Minister Piyush Goyal on Saturday announced that India has reached a framework for an Interim Trade Agreement with the US, opening access to the $30 trillion US market for Indian exporters, particularly MSMEs, farmers and fishermen.

 

Under the interim framework, Indian exports will continue to face a reciprocal tariff of 18 per cent for now. The US has agreed to remove these duties on a wide range of products once the agreement is finalised, and has already rolled back the punitive 25 per cent tariffs imposed earlier. 

 

 

In his post on X, Piyush Goyal said that the framework is expected to significantly expand export opportunities and generate new jobs, especially for women and youth. He said Indian exporters stand to gain across a wide range of sectors, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal goods and select machinery.

 

PM Narendra Modi also welcomed the development, calling it “great news” for both India and the US. He thanked US President Donald Trump for his personal commitment to strengthening bilateral ties and said the framework reflects the ‘growing depth, trust and dynamism of the partnership’ between the two countries.

 

PM Modi said the interim framework would reinforce Make in India by opening new opportunities for farmers, entrepreneurs, MSMEs, and start-up innovators. He added that India and the US share a strong commitment to innovation, and the agreement would further deepen investment and technology partnerships.

 

The prime minister said the framework would help strengthen supply chains and support global growth, as India continues its efforts to build a Viksit Bharat through closer international partnerships.

Export gains across high-value sectors

Goyal said export competitiveness would improve in high-value segments such as generic pharmaceuticals, gems and diamonds, and aircraft parts. He added that India would receive exemptions and negotiated outcomes for aircraft parts, auto components and pharmaceuticals, leading to tangible export gains in these sectors.

 

At the same time, Goyal added the framework fully safeguards India’s sensitive agricultural and dairy sectors. No duty concessions have been offered on products such as maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat, he said, showing the government’s focus on protecting farmers’ livelihoods.

 

A step towards broader trade agreement

The interim trade framework reaffirms the commitment of both countries to work towards a broader bilateral trade agreement and provides a roadmap for deeper economic engagement. It aims to expand market access, strengthen supply chains, enhance technology cooperation and address non-tariff barriers, while balancing export growth with domestic economic safeguards.

 

Both sides have said further negotiations will follow to deepen cooperation across key sectors and translate the framework into a comprehensive bilateral trade agreement in the coming months, building on shared priorities around trade, investment and long-term growth.