New Delhi: Commerce and Industry Minister Piyush Goyal has said that the new trade agreement between India and the United States will open vast opportunities for farmers, micro and small enterprises, entrepreneurs and skilled professionals. He described the pact as a significant step toward strengthening the Make in India initiative and connecting Indian producers with global markets.
Under the understanding reached between the two countries, the United States has agreed to reduce reciprocal tariffs on Indian goods from twenty five percent to eighteen percent. The decision followed discussions between the leadership of both nations and is expected to ease long standing barriers faced by several export oriented sectors. The minister stated that the agreement would also help India gain access to advanced American technology and innovation.
He emphasised that the arrangement would enable Indian businesses to design, manufacture and innovate for the world from within the country. According to him, the development shows the strength of cooperation between two democratic partners committed to fair trade and shared prosperity. The partnership, he added, would encourage joint creation of solutions and contribute to peace and economic growth.
Senior officials in the commerce department also termed the pact a landmark moment in bilateral relations. They noted that many labour intensive industries such as textiles, apparel, leather and marine products had struggled to compete in the American market due to heavy duties. The reduction in tariffs is expected to restore competitiveness and generate fresh orders for Indian exporters.
Industry bodies have welcomed the announcement but have sought further clarity on product coverage and timelines. Business leaders believe the decision could trigger an immediate revival in sectors where global buyers had postponed purchases. The footwear and apparel segments in particular are expected to benefit as sourcing decisions for upcoming seasons are usually finalised early.
Recent trade data shows that Indian merchandise exports to the United States had declined to 6.88 billion dollars in December 2025, reflecting the impact of higher duties. Imports from the United States during the same period stood at 4.03 billion dollars. For the April to December period, exports reached 65.87 billion dollars while imports touched 39.43 billion dollars.
The government views the agreement as a turning point that can revive growth in exports, support farmers and create employment across manufacturing and services. Officials believe the closer economic partnership will strengthen India’s position in global trade in the years ahead.
