New Delhi: The long-awaited India-US trade deal has now received its final approval, with US President Donald Trump officially signing the interim agreement. A joint statement issued by the White House confirmed that both nations have agreed on the framework of an interim trade arrangement, marking a major milestone in bilateral economic relations.
Welcoming the development, Union Commerce and Industry Minister Piyush Goyal on Saturday praised the agreement, stating that it will open the doors of a massive $30 trillion market for Indian exporters. He emphasized that the deal will be especially beneficial for MSMEs (Micro, Small and Medium Enterprises), farmers, and fishermen, while also generating significant employment opportunities.
Millions of Jobs Expected, Focus on Youth and Women
In a post on social media platform X, Goyal claimed that the trade agreement will lead to a sharp rise in exports, creating millions of new jobs. He added that a large portion of these employment opportunities will be for women and young Indians.
“Under the decisive leadership of Prime Minister Narendra Modi, India has agreed on the framework of an interim deal with the United States. This will open a $30 trillion market for Indian exporters, particularly benefiting MSMEs, farmers, and fishermen. The rise in exports will create millions of new employment opportunities, especially for women and youth,” Goyal said.
Tariffs to Be Cut to 18%
According to Goyal, the interim agreement includes a major tariff reduction, under which the United States will lower tariffs on Indian goods to 18%. This move is expected to create major export opportunities for India in the world’s largest economy.
Sectors Likely to Gain the Most
The Commerce Minister highlighted that several labour-intensive and manufacturing-driven sectors are expected to see strong benefits from the deal. These include:
- Textiles and apparel
- Leather and footwear
- Plastic and rubber products
- Organic chemicals
- Home décor products
- Handicrafts
- Selective machinery segments
He also mentioned that tariffs on key Indian exports such as generic medicines, gems and diamonds, and aircraft parts may be reduced to zero, significantly boosting India’s export competitiveness.
Boost for ‘Make in India’
The agreement is expected to strengthen India’s export capability and provide a major push to the ‘Make in India’ initiative, as reduced tariffs could encourage higher manufacturing output and stronger international demand.
Goyal further stated that India may receive additional benefits such as:
- Exemption on aircraft parts under Section 232
- Tariff-rate quota for auto parts
- Positive outcomes from negotiations on generic pharmaceuticals
These measures are expected to result in tangible export gains for India.
Sensitive Agricultural and Dairy Products Protected
The minister also assured that the agreement has been structured in a way that protects India’s agricultural and rural interests. He stated that several sensitive products have been kept fully safeguarded, ensuring farmers and rural livelihoods are not harmed.
Products kept protected include:
- Corn
- Wheat
- Rice
- Soybean
- Poultry products
- Milk and cheese
- Ethanol
- Tobacco
- Select vegetables
- Meat products
He said this reflects India’s strong commitment to protecting domestic farmers while expanding international trade opportunities.
A Major Step in India-US Economic Partnership
The signing of the interim trade deal is being viewed as a significant breakthrough in India-US relations. Analysts believe the agreement could reshape India’s export landscape, strengthen job creation, and improve India’s access to one of the largest consumer markets in the world.
With the framework now finalised, attention will shift to implementation and sector-specific outcomes in the coming months.
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