The new India–US trade deal has brought a big relief for Indian farmers and exporters. Commerce and Industry Minister Piyush Goyal said that this agreement will open huge opportunities for farmers, MSMEs, entrepreneurs, and skilled workers across the country.
For a long time, high tariffs were creating problems for Indian exports to the United States. Many sectors were losing orders and facing uncertainty. But now, with this trade deal, things are slowly changing in a positive direction.
What Is the India–US Trade Deal About?
Under the agreement, the United States has agreed to reduce the reciprocal tariff on Indian goods to 18 per cent, from the earlier 25 per cent. US President Donald Trump announced this decision after a phone call with Prime Minister Narendra Modi.
This reduction in tariff is expected to make Indian products more competitive in the US market. Lower tariffs means lower cost, and that helps Indian exporters get more orders.
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Big Boost for Farmers and MSMEs
Piyush Goyal said that this trade agreement will unlock unprecedented opportunities for Indian farmers and small businesses. According to him, India will not only export more goods but will also get access to better technology from the US.
“This agreement allows us to Make in India for the world, Design in India for the world, and Innovate in India for the world,” Goyal said in a social media post.
For farmers, this could mean better demand for agricultural and marine products. For MSMEs, it opens doors to global buyers who were earlier hesitant due to high tariffs.
Relief for Labour-Intensive Sectors
The deal is very important for labour-intensive sectors like:
- Textiles
- Apparel
- Leather and footwear
- Marine products
These sectors were badly affected after the US imposed tariffs as high as 50 per cent on Indian goods last year. Many exporters said orders were delayed or even cancelled because buyers moved to other Asian suppliers.
Now, exporters are hopeful that these orders will return, especially for the upcoming summer season.
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Exporters Waiting for More Clarity
Even though the announcement is positive, exporters are still waiting for the official US executive order to understand full details. Think tank GTRI said clarity is needed on which products are covered and how fast the new tariffs will be applied.
Once these details are clear, businesses can plan production and exports in a better way.
Trade Numbers Show the Impact
According to Commerce Ministry data:
- India’s exports to the US fell 1.83 per cent in December 2025 due to high tariffs
- Imports from the US grew 7.57 per cent during the same period
- Overall exports to the US between April and December rose nearly 10 per cent, showing long-term strength
These numbers clearly show that tariff pressure was affecting exports, and the new deal may help reverse this trend.
Why This Deal Matters for India
Experts believe this agreement can strengthen India’s position in global trade. Federation of Indian Export Organisations (FIEO) said the deal could be a game changer and may lead to a quick release of orders that were put on hold earlier.
India and the US are seen as natural allies. This partnership is not just about trade, but also about technology, innovation, and shared growth.
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Final Thoughts
The India–US trade deal is a big step forward for Indian farmers, exporters, and small businesses. While some clarity is still needed, the overall direction looks positive.
If implemented smoothly, this agreement can help boost exports, create jobs, and support India’s long-term growth. For now, businesses are hopeful and watching closely how things move ahead.