India-US trade agreement to open new opportunities for farmers, MSMEs, says Piyush Goyal
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Commerce and Industry Minister Piyush Goyal has said the India-US trade agreement will create significant opportunities for domestic farmers, MSMEs, entrepreneurs, and skilled workers while strengthening the government’s Make in India initiative.
Under the agreement, the US will reduce reciprocal tariffs on Indian goods to 18%, US President Donald Trump announced following a phone conversation with Prime Minister Narendra Modi.
Unlocking the power of two large democracies: Goyal
Goyal said the deal would also help India access advanced technologies from the US. “This unlocks the power of two large democracies working together for the shared prosperity of their people. Both India and the US are natural allies and our partnership will co-create technologies, co-develop solutions, and work together for peace, growth, and a brighter future,” he said in a social media post.
He said the agreement reflects the strength of two like-minded, fair-trading democracies collaborating for mutual benefit. “It 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,” Goyal said.
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Finance Minister Nirmala Sitharaman in a social media post said, "Good news for #MadeInIndia products. They will now face reduced tariff of 18%."
Made in India products will now have a reduced tariff of 18%: Modi
Last night, US President Donald Trump first made the announcement on his social media platform Truth Social. It was corroborated by Prime Minister Modi who confirmed the breakthrough following a high-level call with President Trump. "Wonderful to speak with my dear friend President Trump today," the Prime Minister stated. "Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement."
Commerce Secretary Rajesh Agrawal termed the pact a “landmark trade deal”, saying it would drive shared prosperity, innovation and growth for the two democratic partners. “Congratulations to the people of India and the US,” he said.
The announcement assumes significance as several labour-intensive sectors such as textiles, apparel, leather and marine products had been struggling to export to the US due to steep tariffs of up to 50%.
According to Commerce Ministry data, India’s merchandise exports to the US declined 1.83% to $6.88 billion in December 2025 amid high tariffs. Exports had also contracted in September and October last year, though they rose 22.61 per cent in November. Imports from the US grew 7.57% to $4.03 billion in December.
During the April–December period of the current fiscal year, India’s exports to the US increased 9.75% to $65.87 billion while imports rose 12.85% to $39.43 billion.