Commerce and Industry Minister Piyush Goyal announced on Saturday that the United States tariffs on India are lower compared to some other countries, including China and Bangladesh.

Goyal, briefing the media on the US-India trade deal, stated that China faces tariffs of 35%, while Bangladesh is levied with 20% tariffs. He highlighted that several items that previously faced 50% tariffs will now enter the US market with zero duty. According to Goyal, this new trade framework is a major win for Indian exporters.

The Commerce and Industry Minister addressed the media to provide details on the India-US interim trade agreement, terming it a landmark achievement for India's economic growth. He emphasized the potential benefits for exporters, MSMEs, farmers, and fishermen, describing the agreement as a crucial step towards India's journey to becoming a developed nation by 2047. Goyal also highlighted that the increase in exports would create numerous job opportunities for women and youth across the country.

The US will reduce reciprocal tariffs on Indian goods to 18%, which will create significant opportunities in sectors such as textiles, apparel, leather, footwear, plastics, rubber, organic chemicals, home décor, artisanal products, and select machinery.

According to the interim framework, Indian exports will continue to face a reciprocal tariff of 18% for now. However, the US has agreed to eliminate these duties on a wide range of products once the agreement is finalized and has already rolled back the earlier imposed 25% tariffs.

Piyush Goyal shared on social media that the framework is expected to significantly expand export opportunities and generate new jobs, especially for women and youth. He noted that Indian exporters stand to gain across various sectors, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal goods, and select machinery.

Prime Minister Narendra Modi welcomed the development, calling it "great news" for both India and the US. He thanked US President Donald Trump for his personal commitment to strengthening bilateral ties, stating that the framework reflects the growing depth, trust, and dynamism of the partnership between the two countries.

Union Commerce Minister Piyush Goyal mentioned that agricultural exports from India to the United States will be subject to "zero tariffs" as part of the new trade deal. Silk products exported from India to the United States will also be subject to zero tariff rates.

Under the new deal, India will eliminate or reduce tariffs on all US industrial goods and a broad set of agricultural and food products, while Washington will apply a reciprocal tariff rate of 18% on Indian exports. The Interim Agreement between India and the US lowers tariffs on several Indian items, including textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home decor, artisanal products, and certain machinery.

Piyush Goyal has stated that after this tariff cut, India has the second-lowest tariffs from the US in Asia, following Japan. India also fared better overall compared to BRICS countries, securing a lower rate compared to Brazil (50%), China (37%), and South Africa (30%).