Commerce and Industry Minister Piyush Goyal on Saturday announced that India has reached a framework for an Interim Trade Agreement with the United States, a move that opens access to the $30 trillion US market for Indian exporters, particularly MSMEs, farmers and fishermen.
The framework marks a major step forward in India–US economic relations and lays the foundation for a broader bilateral trade agreement in the future.
Under the interim arrangement, Indian exports will continue to face a reciprocal tariff of 18 per cent for the time being. However, the United States has agreed to remove these duties on a wide range of products once the final agreement is concluded.
Importantly, the US has already rolled back the punitive 25 per cent tariffs that had been imposed earlier, offering immediate relief to Indian exporters.
In a post on X, Goyal said the framework is expected to significantly expand export opportunities and generate new jobs, especially for women and youth.
According to Goyal, 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 and artisanal goods
Select machinery
Export competitiveness is also expected to improve in high-value segments such as:
Generic pharmaceuticals
Gems and diamonds
Aircraft parts
Goyal said India would receive exemptions and negotiated outcomes for aircraft parts, auto components and pharmaceuticals, leading to tangible export gains in these sectors.
Prime Minister Narendra Modi welcomed the development, calling it “great news” for both India and the United States.
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, supporting long-term economic growth.
Goyal emphasised that 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 and cheese
Ethanol (fuel)
Tobacco
Certain vegetables and meat
This, he said, demonstrates the government’s focus on protecting farmers’ livelihoods while pursuing export growth.
The prime minister noted that the interim framework would help strengthen supply chains and support global economic growth, aligning with India’s broader vision of building a Viksit Bharat through closer international partnerships.
The interim trade framework reaffirms the commitment of both countries to work towards a broader bilateral trade agreement. It provides a roadmap to:
Expand market access
Strengthen supply chains
Enhance technology cooperation
Address non-tariff barriers
At the same time, it balances export growth with domestic economic safeguards.
Both sides have indicated that further negotiations will follow in the coming months to translate the framework into a comprehensive bilateral trade agreement, building on shared priorities around trade, investment and long-term growth.