Union Commerce and Industry Minister Piyush Goyal has said that the new trade deal between India and America will open huge opportunities for Indian farmers, small scale industries (MSMEs), entrepreneurs and skilled workers. This will also give a huge boost to the Make in India campaign. Under this agreement, America has agreed to reduce the reciprocal tariff on Indian goods from 25% to 18%. This information was given by US President Donald Trump after a phone conversation with Prime Minister Narendra Modi.
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‘Getting new and modern technology will help’
Piyush Goyal said that this deal will help India in getting new and modern technology from America. He wrote on social media that now Indian farmers and industries will be able to manufacture in India for the world, design in India for the world and innovate in India for the world. He described it as a partnership of two like-minded democratic countries, which will work together towards peace, development and a prosperous future.
Congratulations to Prime Minister @NarendraModi ji and president @RealDonaldTrumpas well as to the people of India and the United States, on the landmark trade agreement. This reflects the power of two like-minded, fair-trading democracies working together for shared…
— Piyush Goyal (@PiyushGoyal) February 2, 2026
‘Good news for Made in India products- Sitharaman
Finance Minister Nirmala Sitharaman wrote in a post on Instagram – ‘Good news for Made in India products. Now they will be charged a lower tariff of 18%. Thanks to the leadership of Prime Minister Narendra Modi and the US President for this development. The people of both our big democracies will benefit from this.
Good news for #MadeInIndia products. They will now face reduced tariff of 18%.
Thanking the leadership of PM @narendramodi and @POTUS for this development.
People of our two large democracies stand to benefit. #IndiaUSRelations
— Nirmala Sitharaman (@nsitharaman) February 3, 2026
This historic agreement- Rajesh Aggarwal
Commerce Secretary Rajesh Aggarwal also described this agreement as historic and said that this will provide innovation, development and shared prosperity to both India and America. This deal is also important because labor-intensive sectors like textiles, readymade garments, leather, footwear and marine products were in trouble due to heavy taxes (about 50%) in America. Now these sectors are expected to get big relief.
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When will the deal come into effect?
However, think tank GTRI has said that it is still necessary to be clear on which products will get this discount and when will this deal be fully implemented. Whereas Federation of Indian Export Organizations (FIEO) President S. C. Ralhan said that this deal will prove to be a game-changer for Indian exporters. India’s position will be stronger especially compared to Asian countries. He said that orders which were put on hold by many foreign buyers can now come back immediately, especially in sectors like apparel, textile, leather and footwear. According to the data, due to high tariffs, India’s exports to America had declined to $6.88 billion in December 2025. However, a good growth was seen in November. With the new agreement, exports are expected to pick up again in the coming months.
