‘Milestone Moment for Viksit Bharat 2047’: Piyush Goyal Explains India-US Trade Pact, Reveals Zero-Duty Export List

Delhi: India has taken a major step towards expanding its global trade footprint as Union Commerce and Industry Minister Piyush Goyal on Saturday outlined the key features of the new India–United States trade framework. Addressing the media, Goyal described the development as a “milestone moment” in India’s long-term economic journey, with a clear focus on boosting exports, protecting domestic interests, and moving closer to the goal of Viksit Bharat 2047.

The minister said the trade understanding aims to raise annual bilateral trade between India and the US to USD 500 billion, significantly strengthening economic ties between the two countries. He noted that discussions for a bilateral trade agreement began in February 2025, driven by the shared vision of Prime Minister Narendra Modi and US President Donald Trump to deepen cooperation and future-ready diplomacy.

One of the most important outcomes of the agreement is a sharp reduction in US reciprocal tariffs on Indian goods. Earlier, Indian exports faced tariffs as high as 50 per cent. Under the new framework, this has been brought down to 18 per cent, giving Indian exporters a strong competitive edge. Goyal highlighted that India’s tariff rate is now lower than that of several competing countries, including China, Vietnam, Bangladesh and Indonesia.

The minister said this tariff relief will directly benefit Indian exporters across multiple sectors. A wide range of Indian products will now enter the US market at zero duty, opening up massive opportunities. These include gems and diamonds, generic medicines, pharmaceuticals, smartphones, and a large basket of agricultural products such as spices, tea, coffee, cashew nuts, fruits like mango and banana, mushrooms, cereals, bakery items, jams and vegetable-based products. Several other items such as home décor goods, clocks, watches, seeds, inorganic chemicals, coins and platinum are also included.

Goyal assured that the agreement has been designed carefully to protect Indian farmers and domestic producers. Products where India is self-reliant or where local supply is strong—such as dairy, meat, poultry, rice, wheat, maize, millets, fruits, tobacco and non-alcoholic beverages—have been kept completely outside the agreement. He also clarified that genetically modified products will not be allowed, addressing concerns related to food safety and farmers’ livelihoods.

Earlier in the day, an interim trade agreement framework was announced, which Goyal said would unlock access to a USD 30 trillion US market, especially benefiting MSMEs, farmers, fishermen, women entrepreneurs and youth. The expected rise in exports is likely to generate lakhs of new jobs across India.

Key sectors expected to gain include textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, handicrafts, home décor, artisanal goods and select machinery.