Several Indian exports, including gems, pharma, electronics, machinery and handicrafts, will get zero or lower US tariffs.
Piyush Goyal on India-US interim deal protects farmers
NEW DELHI: Commerce and Industry Minister Piyush Goyal on Saturday said the interim trade agreement with the United States has been carefully structured to protect Indian farmers and the dairy sector, while securing duty-free or sharply reduced tariff access for several Indian export sectors in the American market.
Addressing a press conference after India and the US announced a framework for the interim pact, Goyal said no sensitive agricultural or dairy items had been included in the agreement. “We have not included any item where any Indian farmer will be hurt. All sensitive items have been kept out of the deal,” he said.
The interim framework, agreed on Saturday, will guide negotiations towards a full Bilateral Trade Agreement, discussions for which were launched in February 2025. Officials expect the final agreement to be concluded by March.
Goyal underlined that India has not offered any tariff concessions on key farm and dairy products. “No genetically modified items will enter India, and no tariff relief has been given on meat, poultry, dairy, soybean, maize, rice, wheat, sugar, millets, oilseeds, ethanol and tobacco,” he said, adding that several fruits and pulses were also excluded. At the same time, the minister said the agreement delivers significant gains for Indian exporters, particularly small exporters, artisans and MSMEs. He cited a reduction in US tariffs to 18 per cent for several labour-intensive sectors, noting that exporters are already optimistic about increased orders. “I saw a video of a handicrafts artisan from Sambhal who said the tariff has now come down to 18 per cent and that new orders will come in and business will grow,” Goyal said.
According to the minister, a wide range of Indian exports will now enter the US market at zero duty, with tariffs cut from levels as high as 50 per cent. These include gems and diamonds, pharmaceutical products and generic drugs, smartphones, aircraft parts, machinery parts, select auto components, platinum, clocks and watches, essential oils, home décor items such as chandeliers and lamp parts, and select chemical, paper, plastic and wood products.
Agricultural exports are also set to benefit, with zero reciprocal tariffs on products such as spices, tea, coffee, copra, coconuts and coconut oil, areca nut, cashew nuts and other nuts, as well as fruits and vegetables including mangoes, guavas, kiwis, papaya and mushrooms. On the import side, Goyal said India has reduced or removed tariffs only on items that are not produced domestically or are produced in insufficient quantities. These include apples, distillers dried grains with solubles, wines and spirits subject to a minimum import price, select nuts, certain medicines, medical equipment, industrial inputs and information and communication technology products. Some tariff reductions will be immediate, while others will be phased out or quota-based.
Calling access to US technology a “big win”, the minister said the agreement also ensures the supply of critical ICT products needed for India’s growth and national security. Asked about references in the joint statement to the “non-market policies of third parties”, Goyal said, “Those who understand, they know.”
Summing up, the minister said the interim agreement strikes a balance between export expansion and domestic protection. “Considering how the interests of our farmers and the dairy sector have been protected, I believe this interim agreement is balanced and in India’s national interest,” he said.
