How US-India trade deal will affect imports, exports and industries, explains Piyush Goyal

Union Commerce Minister Piyush Goyal on Saturday (Februray 7) detailed the key provisions and expected impacts of the India–US interim trade framework, highlighting benefits for exporters, consumers, and domestic industry.

Speaking at a press conference, Goyal said India will reduce duties to zero on imports from the US on which it is already import-dependent, while phased tariff elimination will apply to products such as walnuts, almonds, lentils, and essential medicines.

Some wines and spirits will also be opened for import under a Minimum Import Price (MIP) to protect domestic producers, he added.

On industrial goods, Goyal noted that organic and inorganic chemicals, medical devices, lab equipment, ICT products, laptops, and AI-related equipment will see reduced duties. India imports around $26 billion worth of these products, and the reductions are expected to improve accessibility and efficiency for domestic businesses.

The minister confirmed that tariff rate quotas will be applied to several items, including soybean oil, apples, and cotton, balancing imports with domestic interests. He said sensitive sectors like dairy, cereals, millets, meat, and honey have been fully protected.

Goyal also highlighted the export side, saying India will get zero duty on nearly half of auto parts exports ($44 billion), with the remainder at 18% duty. Boeing and Airbus already source significant aircraft parts from India, and the deal is expected to expand such opportunities.

Addressing broader trade ambitions, he said India and the US aim to increase bilateral trade to $500 billion, with the framework forming the first step toward that goal. The minister emphasized that the pact also ensures access to high-quality medical devices, machinery, and ICT goods, supporting technology and industrial development.

On the issue of Russian oil, Goyal said that the matter would be addressed by the Ministry of External Affairs. He also stated that India’s citizens and exporters can expect quality standards and safety protocols to be maintained for both imports and exports.

The minister noted that the 25% additional tariff removal has already been effected through a US executive order, with an 18% tariff reduction expected once the framework is formally signed. He stressed that the deal balances farmers’ sensitivities, domestic industry interests, and export potential, while opening new avenues in technology, machinery, and industrial goods.