India-US trade deal highlights: Goyal calls India-US trade deal ‘fair, equitable and balanced’, lists zero-duty items

India-US trade deal highlights:: Piyush Goyal holds press conference on India-US interim trade deal

India-US trade deal highlights: Union Commerce and Industry Minister Piyush Goyal on Saturday held a detailed press conference to explain the key provisions of the India-US interim trade agreement. During the briefing, he announced tariff reductions, zero-duty items, and the benefits for exporters, farmers, and MSMEs, while underscoring that the framework aims to strengthen bilateral trade ties and expand India’s global market access.

The United States and India have finalised a framework for an “interim agreement” on reciprocal and mutually beneficial trade, the White House announced late night on Saturday, February 6. The framework marks a formal breakthrough after nearly a year of negotiations between the two countries and brings down the US imposed tariffs to 18 per cent.

Union commerce and industry minister Piyush Goyal shared the joint statement on social media, underlining the scale of market access the newly reached framework could unlock. He said that under the leadership of Prime Minister Narendra Modi, India had reached a framework for an interim agreement with the US that would “open a $30 trillion market for Indian exporters.”

Highlighting the beneficiaries, Goyal said the deal would particularly help MSMEs, farmers and fishermen, while adding that increased exports would create “lakhs of new job opportunities for our women and youth.”

The announcement comes days after US President Donald Trump said on Monday that Washington and New Delhi had reached a trade deal, a claim later confirmed by Prime Minister Narendra Modi. PM Modi had stated that under the agreement, reciprocal tariffs on Indian exports to the US would be reduced to 18%.

Trump removes 25% penalty tariff, claims India to stop Russian oil imports

At the same time, President Trump signed an executive order announcing the removal of a 25% tariff on India. The executive order signed by Trump reiterates his claim that India has “committed” to stop importing oil from the Russian Federation “directly or indirectly.” It further states that India has committed to purchasing energy products from the United States.

Trump had earlier used a Truth Social post to claim that India would stop purchasing Russian oil, describing it as a key element of the agreement. That assertion, however, did not feature in PM Modi’s post on X, which was released shortly after Trump’s announcement.

Earlier, When ministry of external affairs spokesperson Randhir Jaiswal was asked about Trump's claim over Russian oil imports, he stressed that ensuring the energy security of 1.4 billion Indians remains government's “supreme priority”.

He said India’s approach is centred on diversification, adding, “Diversifying energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India’s decisions are taken and will be taken with this in mind.”

India–US trade deal interim framework | Top points

1. India to cut tariffs on US industrial and farm goods
India will eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products. These include dried distillers’ grains (DDGs), red sorghum used for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among other products.

2. US applies reciprocal 18% tariff on Indian goods
The United States will apply a reciprocal tariff rate of 18% on Indian-origin goods. Covered sectors include textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products and certain machinery.

3. Zero tariffs on select Indian exports after interim deal
Subject to the successful conclusion of the interim agreement, the US will remove reciprocal tariffs on a wide range of Indian goods. These include generic pharmaceuticals, gems and diamonds, and aircraft parts.

4. Removal of national security tariffs on aircraft parts
The US will remove tariffs imposed on Indian aircraft and aircraft parts under earlier national security proclamations related to aluminium, steel and copper imports.

5. Mutual preferential market access commitment
Both countries have committed to providing each other preferential market access in sectors of mutual interest on a sustained basis.

6. Easing barriers on US food and agricultural exports
India has also agreed to address long-standing non-tariff barriers affecting US food and agricultural products, acknowledging the need to resolve persistent market access concerns.

7. Alignment on standards and conformity assessments
To improve ease of compliance, the two countries will discuss standards and conformity assessment procedures in mutually agreed sectors.

8. Safeguard clause on tariff changes
If either country changes agreed tariff levels in the future, the other country will be allowed to modify its commitments in response.

9. Pathway to broader Bilateral Trade Agreement (BTA)
The interim framework is positioned as a stepping stone toward a full Bilateral Trade Agreement. The US has said it will consider India’s request for further tariff reductions on Indian goods during BTA negotiations.

10. India plans $500 billion purchases from the US
India has stated its intention to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.

11. Technology trade and cooperation expansion
Both sides will significantly increase trade in technology products, including GPUs and other goods used in data centres, while also expanding joint technology cooperation.