Union Commerce and Industry Minister Piyush Goyal on Saturday described the India-US interim trade agreement as a “historic milestone”, saying that the day would
be “written in golden letters” in India’s journey towards becoming a developed nation by 2047. He said that the India-US trade deal is "fair, equitable and balanced". Goyal highlighted that India has secured a major trade advantage over its competitors while protecting the sensitive sectors like agriculture and dairy. Addressing a press conference, Union Minister Piyush Goyal said, "Today is a very important day in India's journey towards a developed India by 2047...With the future in mind, and considering the two countries' relations, diplomatic ties, and the friendship between their leaders, discussions on a bilateral trade agreement began in February 2025. The objective was to achieve bilateral trade of $500 billion between India and the United States annually. Today will be written in golden letters for achieving that goal. There is a wave of happiness throughout the country. There is great enthusiasm in every sector of the country regarding the future. It seems that in the coming days, new opportunities will open up, and the United States of America, the world's largest economy, an economy of approximately thirty trillion dollars, will now open up to our exporters with most-favoured-nation status." "Under this agreement, the reciprocal tariff of fifty per cent that was levied on Indian exports to the US will now be reduced from fifty per cent to just eighteen per cent. Eighteen per cent is lower than the tariffs imposed by all our neighbouring countries and other countries with whom we compete, and this will greatly benefit us and our exporters in the coming days," he added. Goyal stressed that no import benefits would be given to US agricultural products, and India opened its market selectively for certain American items like red sorghum, tree nuts, wines and spirits.
"The interests of farmers and the dairy sector have been protected. I believe that the joint statement between the United States and India, which was finalised late last night and presented to the world, has been welcomed in every corner of the country. Even this morning, I was watching a video. A simple artisan from Sambhal in Uttar Pradesh, working in the handicrafts sector, was saying, "Now the tariff is eighteen per cent. Now we'll benefit greatly. New orders will come in, and there will be progress," These were his words, which I heard this morning on an X (formerly Twitter) handle from a journalist who had interviewed him..."
India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.
While the US will reduce tariffs on Indian goods to 18 per cent from the present 50 per cent, India will eliminate or cut down import duties on all US industrial goods and a wide range of American food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.
According to a joint statement issued by both sides, India has expressed its intention to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
"The US and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade," the statement said.
Further, through an executive order, US President Donald Trump has removed the 25 per cent tariffs, or additional import duty, that it imposed on India in August last year for purchasing Russian oil, citing that the country has undertaken "significant steps" and New Delhi has committed to stopping directly or indirectly importing oil from Moscow.
