India–US Interim Trade Deal Opens $30 Trn Market

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.

Interim Framework: Tariff Relief and Market Access

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.

Export Opportunities Across Key Sectors

Sectors Set to Benefit

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

High-Value Export Segments

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.

PM Modi Welcomes Trade Framework

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.

Boost to Make in India and Start-up Ecosystem

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.

Strong Safeguards for Agriculture and Dairy Sectors

No Duty Concessions on Sensitive Products

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.

Strengthening Supply Chains and Global 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.

A Step Towards a Comprehensive Trade Agreement

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.