Opportunity: A $30 Trillion Market Set to Open for Indian Exporters India–U.S. Seal Framework for Interim Trade Agreement

New Delhi | Agency: India and the United States on Saturday announced a framework for an interim trade agreement, marking a significant step toward deepening bilateral economic ties.

Under the proposed framework, both countries will lower import duties on a wide range of goods to boost two-way trade, while addressing long-standing market-access issues faced by exporters.

As part of the arrangement, the United States will reduce tariffs on Indian goods from the current level of up to 50% to around 18%, substantially improving the competitiveness of Indian exports in the American market. In return,

India will eliminate or sharply cut import duties on a broad spectrum of U.S. industrial goods and food, agricultural and processed products.

Products covered on the Indian side include dry grains, red sorghum (used as animal feed), nuts, fresh and processed fruits, soybean oil, alcoholic beverages, and spirits, among others.

The move is expected to ease entry barriers for U.S. exporters while expanding consumer choice in India.

Announcing the framework, Piyush Goyal, Minister of Commerce and Industry, said the agreement would unlock a $30 trillion market opportunity for Indian exporters,

with micro, small and medium enterprises (MSMEs), farmers, and fisherfolk standing to gain the most.

He added that the pact is likely to generate millions of new employment opportunities, particularly for women and young workers, across export-oriented sectors.

While the framework outlines the broad contours, officials indicated that technical negotiations will continue to finalise product lists, safeguard clauses, and timelines for implementation.

Once concluded, the interim pact is expected to serve as a stepping stone toward a more comprehensive bilateral trade agreement, strengthening supply chains and investment flows between India and the United States.

The announcement comes amid efforts by both governments to diversify supply chains, enhance economic resilience, and expand trade in high-growth areas such as manufacturing, agriculture, and value-added exports.

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