India and the United States are moving closer to unlocking the full potential of their trade relationship, with both sides currently focused on completing the necessary paperwork to expedite the process. Union Commerce and Industry Minister Piyush Goyal has stated that both countries are committed to working together to finalize the trade agreement, ensuring that its benefits can be realized as early as possible.
Goyal addressed the Lok Sabha on Wednesday, assuring members of parliament that India has successfully protected its interests in sensitive sectors, including agriculture and dairy. He emphasized that the agreement aims to boost Indian exports and support Micro, Small, and Medium Enterprises (MSMEs). The Minister stated that the trade deal is a significant step towards strengthening relations between the two countries and advancing India's journey towards becoming a developed nation by 2047.
The India-US trade deal, which reduces tariffs on Indian goods entering the US to 18%, has faced some political opposition, with concerns raised about potential tariff reductions on American goods and increased purchases of US energy, technology, and agricultural products. Goyal clarified that the agreement was finalized after nearly a year of negotiations, which started following Prime Minister Narendra Modi's visit to the US in February 2025. He said that during the negotiations, India was successful in protecting its interests in key sectors such as agriculture and dairy, while the US also secured protection for its sensitive areas.
Goyal emphasized that the trade deal would be favorable for Indian exporters, as the tariffs under the agreement are lower than those imposed on many competing countries, giving Indian products a competitive edge in the US market. He noted that the agreement provides comparative advantages to Indian exporters, particularly in labor-intensive sectors and manufacturing, while also benefitting MSMEs, skilled workers, and industries by improving access to advanced technologies.
The Minister also stated that the trade deal aligns with India's vision of "Make in India," "Design in India," and "Innovate in India" for the world, and is a significant step towards "Viksit Bharat 2047" and "Atmanirbhar Bharat".
Furthermore, Piyush Goyal clarified that the Indian government has taken care of its sensitive sectors like fertiliser and agriculture in the India-US trade deal. Making a statement in the Rajya Sabha, Goyal said this Agreement will provide new opportunities to small and medium businessmen, MSMEs, industrialists, skilled workers and industries. He said the deal will act as a catalyst to strengthen manufacturing, expand employment opportunities, and propel economic growth, while unlocking new business avenues for both nations.
President Trump announced a reduction in the tariff on Indian exports to the United States to 18%, which is lower than the tariffs imposed by the United States on many competing countries; this will increase India's export competitiveness in the American market.
Overall, the India-US trade deal is expected to create new opportunities for exporters and MSMEs, while safeguarding the interests of farmers and sensitive sectors. The agreement is a testament to the deepening engagement between the world's two largest democracies and is poised to unlock significant economic potential for both nations.