New Delhi: Union Commerce Minister Piyush Goyal on Saturday (February 7) addressed the media to brief about details of the India–US trade deal. Lauding the trade agreement between the two countries, Goyal said it is a very important day in India’s journey towards Viksit Bharat 2047, as the objective of the deal is to achieve USD 500 billion in annual bilateral trade.
“Under the leadership of Prime Minister Narendra Modi, discussions on a bilateral trade agreement were initiated in February 2025 by President Donald Trump and Prime Minister Narendra Modi, keeping the future in focus and strengthening ties and diplomacy between the two nations, guided by the friendship between the two leaders,” the Union Minister said.
Goyal highlighted that under the deal, the reciprocal tariff of 50 per cent that was earlier imposed by the US on Indian exports would now be reduced to just 18 per cent. He added that the tariffs imposed on India are lower than those on neighbouring countries and other nations with whom New Delhi competes.
“In the coming days, this will bring significant benefits to India and its exporters. In comparison, the US has imposed nearly 35 per cent duty on China, 20 per cent on Vietnam, 20 per cent on Bangladesh, and 19 per cent on Indonesia. India’s tariff is lower than all these competing countries,” the minister added.
He also highlighted the Indian items that will be exported duty-free to the US.
Here is the list of these items:
- Gems and diamonds from West Bengal and Kerala.
- Generic Drugs and pharmaceuticals
- Smartphones
- Agricultural products, including spices, tea, coffee, coconut, vegetable wax, cashew nuts, avacado, banana, mango, mushroom
- Vegetable planting and vegetable roots
- Cereals, including barley
- Bakery products
- Jams
- Other items covered under zero duty are coins, platinum, clocks and watches, several home décor items such as chandeliers, seeds, and inorganic chemicals and compounds.
He highlighted that the trade deal would not harm farmers’ interests, rathr it would protect their livelihoods by expanding export opportunities.
Aatmanirbhar’ Products Kept Out Of Agreement:
Goyal said that all those products on which India is self-reliant have been kept out of the agreement. ‘He also confirmed that genetically modified products will be allowed in India. Goyal highlighted that concessions on products including meat, poultry products, dairy products, rice, maize, wheat, millets, and fruits—which are in abundance in India—have been kept out of the agreement.
Even tobacco and non-alcoholic beverags are not included in the agreement.
Earlier in the day, a framework for an Interim Agreement between India and the US was announced.
“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 had said earlier in the day.
As part of this framework, the US will slash reciprocal tariffs on Indian goods to 18 per cent, providing a huge market opportunity in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal products, and select machinery in the world’s largest economy.
