Union Commerce and Industry Minister Piyush Goyal announced details of the historic trade agreement between India and the United States, which is set to be formalized in March 2026. Speaking at a press conference in New Delhi on Saturday, Goyal said the deal will provide Indian exporters access to the U.S. market while ensuring protections for farmers and sensitive domestic sectors.
Under the agreement, India will benefit from significant opportunities under the U.S. “Most Favoured Nation” framework. Goyal noted that the deal opens access to approximately $30 trillion of the international market for Indian products. U.S. tariffs, previously at 50%, have been reduced to 18%, lower than tariffs on neighboring countries such as China, Vietnam, and Bangladesh. Key sectors—including generic medicines, gemstones, diamonds, aircraft components, and smartphones—will enjoy zero tariffs.
The deal allows Indian farmers to export spices, tea, coffee, peanuts, mangoes, bananas, and other products to the U.S. duty-free. Meanwhile, sensitive domestic sectors such as wheat, rice, maize, soy, dairy products, and meat will continue to receive full protection. Goyal emphasized that genetically modified crops will not be allowed into India, safeguarding rural livelihoods.
The agreement is expected to create hundreds of thousands of jobs in textiles, leather, and handicrafts, particularly benefiting women and youth. Tariff removal on critical medical products, including drugs for cancer, cardiac, and neurological treatments, will reduce costs for patients. Exemptions are also planned for certain medical devices facing domestic shortages. Additionally, U.S. imports of dry fruits, chemicals, and cosmetics will see tariff reductions. India aims to achieve $500 billion in imports from the U.S. over the next five years, including energy products, aircraft, precious metals, and advanced technology products.