Union Commerce Minister Piyush Goyal underlined the significance of the announcement of the interim framework of the India-US trade agreement, stating that today will be "etched in golden letters." The Commerce minister, assuring that Indian farmers remain protected in this agreement, noted the significant lowering of US tariffs to 18 per cent from 50 per cent, opening up a USD 30 trillion economy to Indian exporters.
"Today is a crucial day in India's journey towards becoming a developed nation. Prime Minister Modi and the US President initiated discussions in February 2025. Today will be etched in golden letters," he said while addressing a press conference on Saturday.
Highlighting the key achievement of the deal, Piyush Goyal said, "A USD 30 trillion economy is now open to our exporters. This joint statement gives every Indian citizen an opportunity for new hope, enthusiasm, and new resolutions. The 50 per cent tariff that Indian exporters faced will now be only 18 per cent. We will have the lowest tariffs compared to our neighbouring countries. Exporters of gems and pharmaceuticals will face zero duty in the US."
Assuring the benefits to Indian farmers, Piyush Goyal said, "I can say with absolute certainty that the farmers, MSMEs, artisans, and craftsmen of India will not suffer any kind of loss."
"Considering how the interests of our farmers have been protected, the interests of farmers and the dairy sector have been protected. I believe that the joint statement between the United States and India, which was finalised late last night and presented to the world, has been welcomed in every corner of the country. Even this morning, I was watching a video. A simple artisan from Sambhal in Uttar Pradesh, working in the handicrafts sector, was saying, "Now the tariff is eighteen percent. Now we're in luck, we'll benefit greatly. New orders will come in, and there will be progress." These were his words, which I heard this morning on an X (formerly Twitter) handle from a journalist who had interviewed him...Under this agreement, the reciprocal tariff of fifty percent that was levied on Indian exports to the US will now be reduced from fifty percent to just eighteen percent. Eighteen percent is lower than the tariffs imposed by all our neighboring countries and other countries with whom we compete, and this will greatly benefit us and our exporters in the coming days," the Minister added.
India and the US announced a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. The joint statement said that the framework reaffirms the countries' commitment to the broader Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.
The United States will also remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats, the joint statement said.
According to the statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of S food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products. India also intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years. (ANI)
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