New Delhi: India’s Minister of Commerce and Industry, Piyush Goyal, on Saturday said that the proposed interim trade framework between India and the United States will deliver significant benefits to Indian youth, farmers, fishermen, and small businesses, while keeping sensitive agricultural and dairy sectors fully protected.
Welcoming the framework agreement announced by the two countries, Goyal said it would provide Indian exporters easier access to a $30 trillion U.S. market, creating new opportunities particularly for micro, small, and medium enterprises (MSMEs), as well as the agriculture and fisheries sectors.
In a post on social media platform X, Goyal said the agreement would boost exports and generate millions of new jobs, especially for women and young people. He credited Prime Minister Narendra Modi’s leadership for shaping the interim trade framework with Washington.
Lower Tariffs, Bigger Export Opportunities
According to Goyal, the framework provides for a reduction in reciprocal tariffs on Indian goods to 18 percent, opening up major opportunities in sectors such as textiles and apparel, leather and footwear, plastics and rubber products, organic chemicals, home décor, handicrafts, and selected machinery.
He added that tariffs will be reduced to zero on several key export items, including generic medicines, gems and diamonds, and aircraft components, strengthening India’s export competitiveness and supporting the government’s Make in India initiative.
India will also benefit from exemptions under Section 232 for aircraft parts, tariff-rate quotas for auto components, and favorable outcomes from negotiations on generic pharmaceuticals, which are expected to drive tangible export growth in these sectors.
Agriculture and Dairy Fully Protected
Goyal emphasized that the agreement safeguards India’s farmers and rural livelihoods by keeping sensitive agricultural and dairy products fully protected. Items such as corn, wheat, rice, soybeans, poultry, milk, cheese, fuel ethanol, tobacco, certain vegetables, and meat products have been excluded from tariff concessions.
“This framework reflects India’s firm commitment to protecting farmers’ interests and ensuring food security, while expanding trade opportunities in other areas,” the minister said.
Strengthening Economic Partnership
The commerce minister said the interim deal demonstrates the shared commitment of India and the United States to deepen economic cooperation and promote sustainable growth for businesses and people in both countries.
The interim trade framework was jointly announced on Friday by the White House and India’s Ministry of Commerce and Industry. It marks a key step toward advancing negotiations on a broader India–U.S. Bilateral Trade Agreement (BTA), which was launched in February 2025 following discussions between U.S. President Donald Trump and Prime Minister Narendra Modi.
A joint statement said the agreement represents a historic milestone in the India–U.S. partnership, signaling a move toward balanced, mutually beneficial trade focused on concrete outcomes.