Commerce and Industry Minister Piyush Goyal on Tuesday said the India–US trade agreement would unlock significant opportunities for Indian farmers, MSMEs, entrepreneurs and skilled workers, while giving a major push to the Make in India initiative.
India and the United States have agreed to a trade deal under which Washington will reduce reciprocal tariffs on Indian goods to 18 per cent from the existing 25 per cent. The announcement was made by US President Donald Trump on Monday following a telephone conversation with Prime Minister Narendra Modi.
Goyal said the agreement would also facilitate greater access to American technology for India. “This agreement unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs and skilled workers to Make in India for the world, Design in India for the world and Innovate in India for the world,” the minister said in a social media post.
He added that the development reflects the strength of two like-minded democracies committed to fair trade and shared prosperity. “India and the US are natural allies. Our partnership will co-create technologies, co-develop solutions and work together for peace, growth and a brighter future for both nations,” Goyal said.
Calling it a “landmark trade deal”, Commerce Secretary Rajesh Agrawal said the agreement would drive shared prosperity, innovation and growth for the two democratic partners. “Congratulations to the people of India and the US,” he added.
The announcement comes as a relief for several labour-intensive sectors such as textiles, apparel, leather and marine products, which were facing difficulties in exporting to the US due to steep tariffs of up to 50 per cent.
However, exporters and trade experts said clarity is still awaited on the exact contours of the deal, including product coverage and timelines, pending an executive order from the US administration. Think tank GTRI noted that further details are required to assess the full impact of the agreement.
Welcoming the pact, Aqeel Panaruna, Chairman of Florence Shoe Company and Director of Grand Atlantia Panapakkam SEZ Pvt Ltd, said the deal would strengthen India’s global leadership. Federation of Indian Export Organisations (FIEO) President S C Ralhan described it as a game-changer for the competitiveness of Indian exports compared to other Asian suppliers.
Ralhan said the agreement is expected to lead to an immediate release of export orders that were earlier put on hold, particularly in labour-intensive sectors such as apparel, textiles, leather and footwear, where global buyers typically finalise summer season sourcing by December.
According to Commerce Ministry data, India’s merchandise exports to the US declined 1.83 per cent to USD 6.88 billion in December 2025 due to high tariffs imposed by Washington. Exports had also contracted in September and October, although they rose sharply by 22.61 per cent in November. Imports from the US increased 7.57 per cent to USD 4.03 billion in December 2025.
During the April–December period of the current financial year, India’s exports to the US grew 9.75 per cent to USD 65.87 billion, while imports rose 12.85 per cent to USD 39.43 billion. The US had imposed a sweeping 50 per cent tariff on Indian goods entering American markets from August 27.
(This story is published from a syndicated feed)
