Addressing a press conference in New Delhi, Goyal said the agreement ensures that no duty concessions have been offered on core farm sectors such as grains, fruits grown domestically, dairy and poultry. “All products in which India is self-reliant have been kept out of the agreement,” he said, emphasising that farmers, MSMEs, and handloom and handicraft sectors remain fully protected.
Under the deal, several Indian agricultural products will enter the US market at zero duty, including tea, spices, coffee, coconut oil, fruits, vegetables, cereals, bakery products, cocoa and sesame seeds. On the industrial side, pharmaceuticals worth an estimated $13 billion, gems and jewellery, smartphones, aircraft parts, auto components, watches, essential oils and select home décor items will also attract zero tariffs.
Goyal said India has selectively opened its market for limited US products such as red sorghum for animal feed, tree nuts, wines and spirits, while maintaining safeguards through quotas and minimum import prices on sensitive items like apples and soybean oil. He reiterated that genetically modified products and key staples including rice, wheat, millets, sugar and soybeans remain excluded.
The minister described the agreement as “fair, equitable and balanced,” noting that India now faces lower US tariffs than major competitors. China continues to face duties of around 35%, while Vietnam, Bangladesh and Indonesia are subject to tariffs ranging between 19% and 25%. “This gives Indian exporters a clear edge in accessing the US market,” Goyal said.
Highlighting sectoral gains, Goyal said seafood exporters would benefit from the reduction of US duties to 18%, alongside new markets opened in the European Union. He added that smartphones and electronic components from India will now be exported to the US at zero duty, boosting domestic manufacturing and supply chains.
The interim agreement lays the groundwork for a comprehensive bilateral trade pact, expected to be signed by mid-March. Goyal said India and the US aim to scale bilateral trade to $500 billion, with the framework expected to generate jobs and deepen cooperation in technology, manufacturing and agriculture.
