India-US Trade Deal: Piyush Goyal Says Zero Tariff on Key Exports, 18% Duty to Boost Indian Exporters
India’s Commerce Minister Piyush Goyal on Saturday said that the proposed India-US trade agreement is expected to strengthen the country’s export sector, with several key products receiving zero-duty access to the American market.
His statement came after India and the United States issued a joint declaration on the interim trade framework, which is expected to be formally signed in the coming days.
Goyal said that the earlier 50 percent reciprocal tariff on Indian goods has now been reduced to 18 percent. He added that this rate is lower than that imposed on several neighbouring countries and will provide relief to exporters who have faced uncertainty in recent months.
According to the minister, the agreement creates new opportunities for India’s growth and improves the competitiveness of Indian products in global markets.
Zero-Duty Access for Multiple Products
The commerce minister said that several Indian exports will now face zero tariffs in the United States. These include gems and diamonds, pharmaceutical products, aircraft parts, smartphones, spices, tea, coffee, coconut and coconut oil, areca nut, Brazil nut, cashew nut, chestnut, vegetable wax, avocado, banana, mango, pineapple, mushrooms, and selected bakery items.
He said that tariffs on generic medicines, gems and jewellery, and aircraft components will be brought down to zero, which will help boost exports and support domestic manufacturing under the Make in India programme.
Goyal also noted that India will receive exemptions under Section 232 on aircraft parts, tariff quotas on auto components, and favourable outcomes for generic pharmaceutical exports.
Safeguards for Agriculture and Dairy
The minister clarified that India’s sensitive agriculture and dairy sectors will remain protected under the agreement. He said that no tariff concessions have been given to agricultural imports from the United States.
He further stated that genetically modified agricultural products from the US will not be allowed into India as part of the trade deal.
At the same time, agricultural produce from Indian farmers will be exported to the US at zero duty, which is expected to improve income opportunities for farmers.
Officials said the interim agreement aims to stabilise trade relations between the two countries and provide long-term support to Indian exporters.
Our Thoughts
The India-US interim trade agreement reflects a gradual improvement in bilateral economic relations after months of uncertainty. The reduction in tariffs and zero-duty access for major export items can help Indian businesses regain momentum in key overseas markets. However, the real impact will depend on how quickly the agreement is implemented and how effectively exporters are able to utilise these benefits. The government’s decision to protect agriculture and dairy sectors also shows a balanced approach, ensuring that domestic producers are not exposed to sudden external pressure. In the coming months, close monitoring will be required to assess whether the deal translates into sustained export growth and job creation.