How Piyush Goyal’s Trade Breakthrough Opens $30 Trillion US Market

Calling it a “Golden Letter Day” for India’s economic future, Union Commerce Minister Piyush Goyal has hailed the new India-US trade framework as a historic breakthrough that opens vast opportunities for farmers, MSMEs, artisans, and exporters across key sectors.

Speaking after the announcement of the Interim Trade Agreement framework, Goyal said the deal marks a decisive moment in India’s growth story. He noted that negotiations initiated by Prime Minister Narendra Modi and US President Donald Trump in February 2025 have culminated in an agreement that opens a $30 trillion economy to Indian exporters.

The minister highlighted that reciprocal tariffs on Indian goods have been reduced sharply from 50 per cent to 18 per cent, giving Indian exporters a competitive edge over regional rivals. He described the joint statement as a symbol of renewed hope, enthusiasm, and confidence for Indian businesses.

According to Goyal, the agreement reflects India’s growing stature as a reliable global trade partner and strengthens its long-term economic partnership with the United States.

Zero Duty for Key Exports, Strong Protection for Farmers

A major highlight of the deal is the zero-duty access granted to several Indian products in the US market. These include gems and diamonds, generic pharmaceuticals, smartphones, aircraft parts, and multiple agricultural commodities such as spices, tea, coffee, cashew nuts, coconut products, and fruits and vegetables.

Goyal stressed that Indian farm exports will enter the US at zero duty, while no tariff concessions have been granted to American agricultural products entering India. He also made it clear that genetically modified food will not be allowed in the Indian market.

Reassuring farmers and dairy producers, the minister said their interests have been fully safeguarded. He categorically stated that Indian farmers, MSMEs, artisans, and craftsmen would not suffer any losses under the agreement and would instead benefit from expanded market access.

Jobs, MSMEs, and Manufacturing Set for Major Boost

The trade framework is expected to deliver significant gains for labour-intensive and export-oriented sectors. Goyal said industries such as textiles, apparel, leather, footwear, toys, and gems and jewellery are likely to see a sharp rise in exports, leading to the creation of lakhs of jobs, particularly for women and youth.

He described the agreement as a major thrust for MSMEs, which form the backbone of India’s manufacturing and export ecosystem. Industry leaders, including representatives from the gems and jewellery sector, have welcomed the move, saying it will revive trade volumes after months of high tariffs.

The framework also includes exemptions and tariff rate quotas for sectors such as automobiles, aviation, and pharmaceuticals, further strengthening India’s export competitiveness and supporting the “Make in India” initiative.

Strategic Partnership and Long-Term Trade Vision

Beyond immediate trade benefits, the agreement reinforces the broader Bilateral Trade Agreement negotiations launched in 2025. Both countries have committed to improving supply chain resilience, regulatory cooperation, and market access.

India has also indicated plans to purchase $500 billion worth of US energy, aircraft, technology, and raw materials over the next five years, deepening economic integration. The US, in turn, will remove tariffs on select aircraft parts and security-related items.

Goyal said the deal reflects India’s balanced approach to protecting domestic interests while expanding global trade ties. He expressed confidence that the framework would help transform India into a developed nation and a major export powerhouse in the coming years.

'MEA to give information about Russian oil'

Goyal said the Ministry of External Affairs will give information about India's purchase of Russian oil.

When asked whether India will stop purchasing Russian oil, as mentioned in a White House statement announcing the elimination of the additional tariffs imposed on India for the purchase, Piyush Goyal said, "MEA will give information about it."

After announcing the interim framework between the United States and India trade agreement, the White House had said, "India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase United States energy products from the United States, and has recently committed to a framework with the United States to expand defense cooperation over the next 10 years."

(With inputs from ANI)