India-US Trade Deal Highlights: Is this an opportunity for India? Piyush Goyal explains amid ‘zero tariffs’ on imports

From textiles, rubber, to organic chemicals and home décor — Here is the list of Indian goods that will attract lower tariff rates on export to America.

1. Textile and apparel exports
2. Silk exports
3. Leather and footwear exports
4. Plastic and rubber exports
5. Organic chemicals exports
6. Home décor exports
7. Artisanal product exports
8. Machinery exports

Zero tariffs on —

1. Pharmaceuticals
2. Gems and diamonds
3. Aircraft parts

India is planning to diversify the country's energy sourcing requirements to several markets amid the prevailing market conditions and evolving global dynamics.

“Insofar as India’s energy sourcing is concerned, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government,” said MEA, cited ANI.

“Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this,” they said.

Read more: Energy security is supreme priority, says MEA

From agricultural products, fresh and processed fruit, to alcohol and medicines — Here's the list of US goods that will attract ‘zero tariffs’ in India.

1. US food and agricultural products
2. Fresh and processed fruits
3. Soybean oil
4. Alcohol
5. Medicines
6. Cosmetics
7. Chemicals
8. Computer products
9. Health equipment
10. Additional products

Read more: About goods subject to ‘zero tariffs’ or a reduced rates

In a joint statement issued on Saturday, 7 February 2026, India announced its plans to purchase $500 billion worth of items like energy products, aircraft parts, precious metals, among other things from the United States in the next five years.

“India intends to purchase $500 billion of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 years,” according to the joint statement.

Union Commerce Minister Piyush Goyal said that the trade deal with the United States of America opens up a c

The trade deal “opens up a huge opportunity for India in modern areas like data centers, artificial intelligence, quantum computing, where we will get equipment, high quality chips, high quality ICT goods, high quality innovative machineries, where we can import high quality pharma products, medical devices, other products for which the United States is very well known, and will help us in expanding trade on both sides, so that India and United States continue to grow together for the shared prosperity of 1.75 billion people,” said Piyush Goyal during his address.

Union Commerce Minister Piyush Goyal said that although the government does not dictate the purchases, but the nation is looking to diversify their sources of precious metal imports.

“Government doesn't dictate purchases, but if the deal is good, obviously, we want to diversify our sources. So if the gold or platinum importers are importing precious metals, I am sure they will be happy to import,” said Goyal during his media address.

India and the United States together aim to create alternative sources of critical minerals in an effort to create a resilient supply chain in the market.

“US and India are both strategic partners, friends and allies, and they are a part of Pax silica, the US-led initiative, which is working to develop alternate sources of critical minerals, which is working to create resilient supply chains, to ensure uninterrupted supply of critical minerals, to support industry and support economies around the world. We are very confident that like-minded, friendly countries, who are all members of Pax Silica, will have a significant impact in ensuring very robust and resilient supply chain,” said Union Minister Piyush Goyal.

Union Commerce Minister Piyush Goyal said that India is set to cut tariffs on medical device imports as part of the landmark trade deal between the two nations.

“c,” said Piyush Goyal.

Union Minister Piyush Goyal explained that although America has superior technology than any other country in the world, they are facing higher cost of production and labour which is making them not able to compete in the world market.

“America has innovation and technology far superior to any other country in the world, but because of their high cost of production and labour, there are many products which they are not able to compete in the world market,” said Piyush Goyal.

Union Commerce Minister Piyush Goyal said that there is no competition with the United States of America, and that both countries complement each other.

“It is important that we all understand this. A country like the United States of America, where the cost of labour is probably 50 times the cost of labour in India, a country like the United States of America with a per capita income of $90,000 nearly versus India, which is at $3,000 per capita, there is certainly no competition. We actually complement each other,” said Piyush Goyal in his media address.

“There will be a quota-based system for soybean oil imports into India,” said Piyush Goyal.

From foreign soybean oil to alcohol (wine and spirits) is set to become cheaper in India after the trade deal with the United States.

“India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products,” said India and the United States in a joint statement on 7 February 2026.

Union Commerce Minister Piyush Goyal said that the Ministry of External Affairs will give further details on India's import of Russian Oil, amid the trade deal with the United States.

India will cut or eliminate tariffs on several products imported from the United States as part of the India-US trade deal. However, Minister Piyush Goyal highlighted how this move has been carried out with a calibrated approach to protect Indian industries.

“India has taken a calibrated approach, protecting our farmers, like for the import of distilled grain solubles (for animal husbandry, poultry benefits), wines & spirits (alcoholic beverages) with a minimal import price cap, Pista, Walnut, Almond, Lentils. Providing the United States with some eliminations and deductions in tariffs,” said Piyush Goyal in his media address.

Union Commerce Minister Piyush Goyal said that silk products exported from India to the United States will be subject to zero tariff rates in the western nation part of the new trade deal between the two countries.

Union Commerce Minister Piyush Goyal said that agricultural exports from India to the United States will be subject to “zero tariffs” as per the new trade deal.

Vegetable planting material, vegetable sap, vegetable roots, taro, banana, beans, cereals, barley, and seeds are among other goods which are set to record these tariff cuts.

Pharmaceutical goods worth $13 billion to be tariff-free, says Goyal.

Goyal says US tariff lower than peer countries including China, Indonesia, Bangladesh

Piyush Goyal says every corner of India has welcomed the trade agreement.

Piyush Goyal's press conference begins.

Commerce Minister Piyush Goyal to addressa press conference on the details of the India-US trade deal

Generic pharmaceuticals, gems and diamonds, and aircraft parts are among the items on which tariffs were reduced to zero. India will also receive a preferential tariff rate quota for automotive parts.

Senior Congress leader Vijay Wadettiwar on Saturday said the India-US trade deal would negatively impact the interests of farmers in Maharashtra as agricultural imports will carry zero per cent duty.

“No concessions have been extended to sensitive agricultural sector produce in grains, fruits, vegetables, spices, oilseeds, dairy, poultry, & meat amongst many others while securing preferential access for Indian goods through the India-U.S. Interim Agreement framework,” Piyush Goyal said in a post on X.

Commerce Minister Piyush Goyal is set to address a press conference shortly.

“This is an important deal because it comes soon after we have concluded the mother of all deals with the European Union, 27 countries. After that, the trade deal with the United States, I think, has given our exporters, our small industrialists, our farmers and our labourers a great advantage over our competitors. I expect our exports to the United States to increase significantly. We will have very good market access to a large market of 30 trillion dollars. Combined with the EU, we will have a market of almost 60 trillion dollars," says former foreign secretary Harsh Vardhan Shringla.

“The India–US Trade Deal marks a pivotal step forward in advancing economic synergy between two of the world’s largest democracies. This strategic partnership is designed to lower tariffs, ease regulatory bottlenecks, and unlock new opportunities across sectors. As India strengthens its position as a global manufacturing hub, this agreement offers a timely boost to competitiveness, technology access, and supply chain resilience. It’s a moment to accelerate value creation—for India, with India, and from India—at a truly global scale,” says FICCI president Anant Goenka.

“The US has always betrayed you, and Russia has supported you at that time... The American and Indian finance ministers have issued a joint statement. It says that they have auctioned off farmers' interests... India is the world's largest coal producer, but you will buy it from the US? We will have to find out who are the businessmen benefiting from this,” says AAP leader Sanjay Singh.

“This is a major and decisive shift from protectionism to partnerships between the two countries. Because over the last six to seven months, there have been many ups and downs in the trade relations between India and the US. I think this marks a very significant moment for both countries. And this also shows that India is definitely a trusted and economically reliable partner of the US,” says PHDCCI CEO and Secretary General Ranjeet Mehta.

“This is not a trade deal, it is a grave deal... They talk about 'Make in India', but they have done 'Sale in India'... Trump is dictating everything and PM Modi is reading the script... This is not a master stroke. It is a major mistake,” says Congress MP Sukhdeo Bhagat.

“Trade deal happening is a good thing... Piyush Goyal tweeted that we are making an announcement, but what is it? When will they provide the country with details?... A trade deal means equal respect... A white paper should be brought in front of the country,” says Shiv Sena (UBT) spokesperson Anand Dubey.

India's former G20 Sherpa and ex-NITI Aayog CEO Amitabh Kant on Saturday said that India will gain a competitive edge over countries like Vietnam and Bangladesh, while protecting its agriculture and dairy sectors, after the announcement of the framework of the India-US trade agreement.

"There's going to be a lot of benefit. It is in the favour of farmers and people of India. We have protected all the major crops and dairy products. On the other hand, farmers will get markets for export. Our Basmati rice will rock the US. Our spices will go there. This is in the best interest of farmers," says agriculture minister Shivraj Singh Chouhan.

Union Agriculture Minister Shivraj Singh Chouhan on Saturday assured that the government has protected all the major crops and dairy products, prioritising the benefits of farmers in the interim framework for the US-India trade agreement.

Shivraj Singh Chouhan also emphasised that the deal would also open US markets for Indian exports, saying, "Our basmati rice will rock the US."

Congress MP Jairam Ramesh on Saturday said that the Opposition parties will discuss the India-US trade deal framework in the Parliament during the ongoing Budget Session.

Speaking to ANI, Jairam Ramesh called the India-US joint statement a tactic to divert attention from the 2020 standoff with China, which was flagged by the Leader of the Opposition in the Lok Sabha, Rahul Gandhi, in Parliament.

Generic pharmaceuticals, gems and diamonds, and aircraft parts are among the items on which tariffs were reduced to zero. India will also receive a preferential tariff rate quota for automotive parts.

New Delhi has agreed to address long-standing barriers to the trade in US medical devices, eliminate restrictive import licensing procedures that delay market access for, or impose quantitative restrictions on American Information and Communication Technology good, says joint statement.

“The interim trade agreement between India and USA is anchored in the shared commitment of our two great nations towards a glorious future under the leadership of PM Narendra Modi and POTUS Donald Trump. It will further strengthen the Make In India initiative and open up vast opportunities for our farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more by generating large-scale direct and indirect employment opportunities, particularly for our youth. As we continue on our journey towards ViksitBharat, this framework reflects the commitment towards promoting innovation and will further deepen investment and technology partnerships between India & USA,” says Union Minister Hardeep Singh Puri.

External Affairs Minister S Jaishankar said, "The framework for an Interim Agreement will realise a mutually beneficial India - US trade partnership."

"The framework will ensure greater market access and opportunities for our exporters. New vistas have opened up that will further promote Make in India," Jaishankar added.

“The Governments of India and the United States have finally signed an interim tariff agreement aimed at reducing trade barriers and strengthening bilateral economic cooperation. The framework was agreed upon in ongoing negotiations to expand two-way trade and to lay the groundwork for a comprehensive Bilateral Trade Agreement (BTA),” says Rajeev Juneja President, PHDCCI.

“A new day! All credit to President Trump and Prime Minister Modi for their leadership and vision in achieving this,” says US Ambassador to India Sergio Gor.

In February last year, India and US entered into negotiations for the first phase of the BTA. This framework will now be converted into a legal pact, which is expected to be signed by mid-March, following which India will start cutting down duties on specified American goods.

The joint statement also said that India and US will "promptly" implement this framework and work towards finalising the interim agreement with a view to concluding a mutually beneficial Bilateral Trade Agreement (BTA).

"Under the visionary leadership of PM Narendra Modi, India-US have agreed on a framework for an Interim Trade Agreement. This landmark framework represents a strategic milestone in India's economic journey. It will significantly expand export opportunities, strengthen labour-intensive sectors, attract high-quality investments and create large-scale employment," Rajnath Singh said.

"The interests of our farmers and agriculture have been safeguarded. I express my gratitude to PM Modi for his tireless efforts in unlocking the historic avenues for growth, employment and long-term economic empowerment," he added.

Here's who has lower tariffs compared to India: European Union, Japan, and Switzerland: 15% US tariffs, while the United Kingdom: 10% rate.

As India and the US formalised a new trade agreement, both sides foresee strong potential for expansion in agricultural trade, despite long-standing differences over market access and tariffs.

Notably, after this cut, India has the second lowest tariffs from the US in Asia, after only Japan. India also fared overall better compared to BRICS counterparts, netting a lower rate compared to other banner names — Brazil (50%), China (37%) and South Africa (30%).

Here is the full list of items with 18% US tariffs

• Textile and apparel,
• Leather and footwear,
• Plastic and rubber,
• Organic chemicals,
• Home décor,
• Artisanal products, and
• Certain machinery.

Congress leader Manish Tewari has raised concerns about the wording of the India-US Joint Statement on a framework for the Bilateral Trade Agreement, saying it implies significant concessions by India on industrial and agricultural tariffs to the United States.

Former US Assistant Secretary of Commerce Raymond Vickery said that India has done better than most other nations in having a logical and deliberate process rather than falling into the chaos created by US President Donald Trump.