New Delhi: India has completely protected its agriculture and dairy sectors in the trade agreement with the US, Union Commerce Minister Piyush Goyal said on Saturday, February 7, adding that the trade pact will open a USD 30 trillion market for Indian exporters, especially Micro, Small, and Medium Enterprises (MSME), farmers and fishermen.
“The agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products,” Goyal said during a press conference.
No genetically-modified products will be allowed into India, he said, adding that staples like maize, rice, wheat, millets, and ragi will not see any impact. Fruits grown in abundance in India, including banana and citrus, will remain protected. Meat, poultry, dairy products, soya bean, sugar, and cereals will not be affected by the deal.
There will be significant benefits for the textile and leather sectors. Silk products have also been brought under zero duty, said the minister.
In the agriculture sector, several Indian products will now be exported to the US with zero duty. These include tea, spices, coconut oil, vegetable wax, areca nut, Brazil nuts, chestnuts and a variety of fruits and vegetables, he said.
According to the minister, vegetable roots, cereals, barley, bakery products, cocoa products, sesame seeds, poppy seeds and citrus juice will also face no reciprocal tariffs and will now enter the US market duty-free.
Gems and jewellery, as well as pharmaceutical products, will also enjoy duty-free access, boosting India’s export competitiveness.
Key sectors that will benefit are aircraft parts, machinery parts, generic drugs and pharmaceuticals. Other items covered under zero duty include coins, platinum, clocks and watches, essential oils, some home decor items like chandeliers, seeds and inorganic chemicals and compounds.
The Union Minister also pointed that India now has the lowest US tariffs among its neighbours as well as competitors. “China has been imposed with over 35 per cent tariffs, while Bangladesh and Vietnam have been slapped with 25 per cent tariffs. India has a much lesser tariff now,” he said.
In a post on X earlier in the day, Goyal said the trade agreement framework will help India and the US remain focused on working together to further deepen economic cooperation, reflecting shared commitment to sustainable growth for our people and businesses.
“This will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen. The increase in exports will create lakhs of new job opportunities for our women and youth,” he said.
He said the increase in exports will create lakhs of new job opportunities for the country’s women and youth.
