An interim framework for a trade agreement worth $500 billion (about Rs 45,29,069.80) has been agreed upon between India and America. This agreement is not only a new chapter in the economic relations between the two countries, but also a big opportunity for Indian exporters to increase their penetration in the US market. Union Minister Piyush Goyal on Saturday presented the government’s side on this deal with America. He said that this agreement will prove important in making the country developed.
Goyal said that the $30 trillion economy opens up for our exporters with most preferred duty. The joint statement finalized between India and America late last night and presented to the world has been welcomed everywhere. Goyal said that today will be written in golden letters in the history of India. There is a wave of happiness in the entire country. This day will be considered important for developed India.
Piyush Goyal said today is an important day on the path to a developed India 2047, and described the interim trade agreement as a historic step for India’s economy. Trade talks between India and the US began in February 2025, with the aim of achieving export turnover of $500 billion per year. Goyal highlighted the feeling of happiness and optimism spread across the country after the announcement of the agreement.
Talks focused on promoting trade between the two countries
He praised the leadership of Prime Minister Modi and US President Trump for presenting a grand, visionary vision while strengthening bilateral relations. Discussing the bilateral agreement, Goyal said that it has been focused on promoting trade and deepening cooperation between the two countries. This agreement is expected to increase opportunities for Indian exporters, especially small and medium enterprises, farmers and fishermen. Goyal described the day as “a day written in golden letters” in India-US trade history.
Commerce and Industry Minister Piyush Goyal, while informing the media about the outlines of the India-US interim trade agreement, described it as a historic step for India’s economic development. Highlighting the potential benefits for exporters, small and medium enterprises, farmers and fishermen, Goyal described the agreement as an important milestone in India’s journey to Develop India 2047, emphasizing job creation, stronger trade ties and opportunities for innovation and investment.
Great news for agricultural exporters and farmers
This agreement with America has opened new doors of export for the Indian agricultural sector. According to the Commerce Ministry, now a wide range of fruits, vegetables and processed foods will enter the US market without any import duty. The list includes fresh produce like mango, banana, guava, avocado, kiwi, papaya, pineapple and mushrooms. Additionally, tariffs on value-added products such as bakery items, cocoa products, citrus juices, and cereals, barley, sesame and poppy seeds have also been removed, providing a direct opportunity to Indian farmers and agri-business companies to strengthen their foothold in the US market.
These fruits and vegetables of America are not allowed to enter India
Apart from this, keeping in mind the interests of its domestic farmers and the sensitivity of the agricultural sector, India has banned or decided not to give concessions on the import of many types of vegetables and fruits from America. It mainly includes potatoes, peas, beans, onions, frozen vegetables, Agaricus mushrooms, and citrus fruits (e.g. oranges, mandarins).
No duty will be imposed on gems and pharma companies
Commerce Minister Piyush Goyal said that under the new India-US trade agreement, there will be no duty on exports of many key goods to the US. Gems and jewelery as well as pharmaceutical products will now enjoy duty-free access, enhancing India’s export competitiveness and supporting the ‘Make in India’ initiative.
Pharma, coffee and mango can be exported without any tariff
Goyal says that gems, pharma, coffee, mangoes and many other items will be exported duty-free to America. In the agriculture sector, many Indian products will now be able to be exported to the United States without any duty. These include tea, spices, coconut oil, vegetable wax, betel nuts, Brazil nuts, chestnuts and a variety of fruits and vegetables. According to Piyush Goyal, vegetable roots, grains, barley, bakery products, cocoa products, sesame seeds, poppy seeds and citrus fruit juices will also not attract any reciprocal duty and will now enter the US market duty-free.
Go from 50% tariff to zero tariff
“Many goods that earlier attracted 50% tariff will now enter the US market with zero duty,” Piyush Goyal said, highlighting a major win for Indian exporters under the new India-US trade framework. “China has been slapped with a 35% tariff, while Bangladesh and Vietnam have been slapped with a 25% tariff. We now face a much lower percentage of tariff,” Goyal said.
We have not done anything to harm the interests of farmers: Goyal
Piyush Goyal said reciprocal duties on many Indian exports will be reduced to zero, boosting trade with the United States. The major sectors benefiting include aircraft parts, machinery parts, generic drugs, pharmaceuticals and gems and diamonds coming from Bengal, Kerala and Maharashtra. Other items covered under zero duty include coins, platinum, watches, essential oils, some home decor items like chandeliers, seeds and inorganic chemicals and compounds. Goyal said that GM foods will not be allowed to be sold in India.
Goyal highlighted that many agricultural products from India will also enter the US market at zero duty. He stressed that the trade agreement does not harm the interests of farmers and is aimed at protecting their livelihoods while expanding export opportunities.
Some limitations were also set in the deal
Some boundaries have been set for India in the trade agreement negotiations with the US. Piyush Goyal said that no type of genetically modified products will be allowed in India. No concession will be given on staple food items like maize, rice, wheat, millet and ragi. Fruits grown in abundance in India, including bananas and citrus fruits, will be protected. Meat, poultry, dairy products, soybeans, sugar and grains will not be affected by this agreement.
Kabuli gram will not get any relief under this agreement. Even ethanol and tobacco are completely safe. “I can say with full confidence that this India-US agreement does not in any way harm the interests of India’s farmers, small and medium enterprises or the handloom and handicraft sectors,” Goyal said. On a question related to Russian oil purchase, Goyal said that the answer will be given by the Ministry of External Affairs.
