India–US Interim Trade Pact Won’t Harm Farmers or MSMEs, Says Piyush Goyal

Commerce and Industry Minister Piyush Goyal today said the interim trade agreement between India and the United States does not include any item that could harm Indian farmers or MSMEs.

Addressing a press conference, he stressed that the pact provides no import advantage to US agricultural products, while offering duty-free access for several Indian goods entering the American market.

“We have not included any item where any Indian farmer will be hurt,” Goyal said. “All sensitive items have been kept out of the deal. No genetically modified items will enter India, and no tariff relief has been given on meat, poultry, dairy, soybean, maize, rice, wheat, sugar, millets, fruits such as bananas, strawberries, cherries, citrus fruit, green pea, kabuli chana, moong, oilseeds, ethanol and tobacco.”

Goyal’s remarks came hours after India and the US issued a joint statement announcing agreement on the first tranche of their broader bilateral trade pact.

“18% is lower than the tariffs imposed by all our neighbouring countries and other nations with whom we compete, and this will greatly benefit us and our exporters in the coming days,” he added.

Zero Duty on Indian Goods

According to the joint statement, several Indian products will now enter the US market at zero duty. These include gems and diamonds, pharmaceutical products, and smartphones.

Gems and Jewellery sector also welcomed the decision and said this agreement lays the foundation for broader opportunities and creates a multiplier effect across allied industries such as logistics, design and retail.

“In the agricultural sector as well, there are many items exported from India to the US on which a zero reciprocal tariff will be applied — meaning the additional duty will be zero,” Goyal noted. “For example, spices, tea, coffee and products made from them; coconut and coconut oil; vegetable wax; areca nut, Brazil nut, cashew nut and chestnut. Many fruits and vegetables are also included.”