Commerce and Industry Minister Piyush Goyal has clarified the details of the interim trade agreement framework reached between India and the United States, emphasizing the protection of Indian farmers' interests. The agreement aims to boost bilateral trade ties and expand India's access to the US market, potentially unlocking a $30 trillion market for Indian exporters.
Goyal, in a press conference on Saturday, February 7, 2026, addressed concerns about the impact of the deal on Indian agriculture. He asserted that the agreement does not include any items that would harm Indian farmers. Sensitive agricultural items have been excluded from the deal, while several areas have been opened for duty-free entry of Indian agricultural products into the U.S. market. Specifically, certain fruits, vegetables, tea, and coffee will attract zero reciprocal tariffs in the US. Agricultural products like spices, tea, coffee, copra, and coconut oil will also be exported on a zero-tariff basis. This is expected to significantly benefit farmers and enhance India's competitiveness in the global market.
Under the interim framework, a reciprocal tariff of 18% will be applied to certain Indian exports. However, the US has agreed to remove these duties on a wide range of products once the agreement is finalized. The United States will apply a reciprocal tariff rate of 18 percent on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery. Once the Interim Agreement is successfully concluded, the reciprocal tariff will be removed on a wide range of goods identified, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
The agreement is expected to create new job opportunities, particularly for women and youth. Indian exporters are set to benefit across various sectors, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal goods, and select machinery. Gems, smartphones, and pharmaceuticals will continue to attract no duties.
Goyal stated that India has opened its market selectively for certain American items such as red sorghum, tree nuts, wines, and spirits. He emphasized that products on which India is self-reliant have been kept out of the agreement. According to Goyal, the 18% tariffs are lower than those imposed by the US on some of India's competitors.
The announcement of the interim trade agreement framework has been welcomed by both countries. Prime Minister Narendra Modi hailed it as "great news" for India and the US. The agreement is expected to be signed in the next few weeks.