On Sunday, Union Commerce and Industry Minister Piyush Goyal stated that the interim trade agreement between India and the United States is a strong and equitable arrangement, taking into account the important concerns of both nations. He believes this deal will significantly accelerate India's progress towards becoming the third largest economy globally within the next two and a half years.
In an exclusive discussion with The Tribune, Goyal referred to the agreement as the "Kisan Surakshit, Bharat Viksit (secure farmer, developed India) Agreement." He emphasized that the government's objective is to elevate the Indian economy from its current $4 trillion to over $30 trillion by the year 2047, marking an ambitious eight-fold increase.
Goyal confidently asserted, "The US agreement will undoubtedly hasten our ascent to the position of the world’s third-largest economy. I strongly believe that we will achieve this status in just two and a half years. More crucially, we aim to see India grow to a $30 trillion economy. I am optimistic that the nine free trade agreements we have secured with 38 developed nations will contribute significantly to this goal."
As the primary negotiator for the US agreement, Goyal highlighted that it presents mutual benefits for both countries while ensuring complete protection for the fundamental interests of Indian farmers.
"All our products will now benefit from reciprocal tariffs that are lower than what our competitors face. At its core, trade revolves around comparative advantages, and currently, our reciprocal tariffs are more favorable than those of other emerging markets or developing nations, giving us a competitive edge. Around half of our exports can still be traded at zero reciprocal tariff rates. Notably, sectors like pharmaceuticals and smartphones will enjoy zero duties," he explained.
Refuting claims that the agreement was delayed, Goyal pointed out that it was finalized within ten and a half months following a commitment made by PM Narendra Modi and US President Donald Trump in February 2025 to reach an ambitious $500 billion in annual bilateral trade by 2030. He mentioned that both nations have carefully navigated sensitive sectors to strike a balanced agreement.
"Given that we have a per capita income of $3,000, our focus was primarily on labor-intensive and agricultural sectors. We have managed to create a well-balanced deal that benefits both parties," Goyal noted, adding that new opportunities have emerged for industries such as leather, textiles, handicrafts, and gems and diamonds, all falling under zero duty. He further elaborated that auto components and aircraft parts would also be free from duties, leading to a wide array of new avenues for trade while safeguarding farmers' interests in sensitive areas.
He mentioned sectors that remain off-limits include meat, poultry, dairy, cereals, and genetically modified foods, asserting, "All primary interests of our farmers have been fully protected. Now, Indian farmers will have export opportunities across both 18% and zero percent tariff segments. Additionally, we now have zero duties on a variety of products including spices, teas, coffee, coconuts, nuts, and several fruits and vegetables like avocados, bananas, and shiitake mushrooms, which we produce abundantly."
When asked about the implications of India opening its apple market to US imports, Goyal clarified that there is a rising demand for apples in India, with the country still importing 550,000 tonnes annually, accounting for 25% of its total production. He assured apple growers that sufficient safeguards are in place.
"What we have opened up to the US is less than our current imports from them. It will operate under a quota system, and we've also established a minimum import price of Rs 80 plus an additional Rs 20 duty. This means no imports can occur below Rs 100. This should help boost incomes for apple farmers as demand increases," he stated.
Addressing concerns regarding the US making the withdrawal of 25% punitive tariffs contingent on India's oil purchases from Russia, Goyal indicated that this matter falls within the purview of the External Affairs Ministry.
He dismissed criticisms from the Congress-led Opposition regarding the agreement being "unequal." "They are quite misinformed. They should take the time to review the information we've shared publicly. This is a fantastic agreement that serves the interests of our citizens and businesses alike, which will foster India's growth narrative. Our foreign exchange reserves will increase as investments flow in. Overall, this agreement will benefit the 1.4 billion Indians as consumers and businesses across various sectors, and it will assist India in achieving developed nation status by 2047," Goyal remarked.
On the Opposition's call for a parliamentary discussion of the deal, he noted that previous trade agreements have not been brought to Parliament for discussion, stating that such decisions rest with the Lok Sabha Speaker and Rajya Sabha Chairman.
He mentioned that formalizing the deal into legal documentation could take another month to a month and a half, emphasizing that it might be premature to discuss parliamentary deliberations at this stage.
Goyal also expressed optimism regarding India's commitment within the agreement to purchase $500 billion worth of goods from the US over the next five years. "Our projection indicates that we will need to import around $2 trillion worth of products encompassing technology, energy, airplanes, and more over the next five years. Therefore, importing $500 billion from the world's largest economy is not an unachievable goal, provided they offer competitive pricing and quality," he said.
Regarding the possibility of a mid-term review of the deal, Goyal confirmed that it is a standard practice included in every agreement, assuring that it would be incorporated into the final documentation.
