India-US trade deal: Zero tariffs on gems, pharma, farm produce, says Goyal

Union Minister for Commerce and Industry, Piyush Goyal, said on Saturday (February 7) that under the India-US trade deal, several items made in India, including gems, diamonds, pharmaceutical products and smartphones, will have zero tariffs on them.

"...There are several items on which zero duty will now be levied when our exporters send goods to the United States of America. For example, zero duty will be applied to gems and diamonds. Pharmaceutical products, which are exported from India in large quantities, will also be subject to zero duty. Smartphones, which are exported from India to the US in large numbers, will continue to have zero duty,” said Goyal.

“In this way, there are numerous such items on which zero duty will be levied in the future. In the agricultural sector as well, there are many items that will be exported from India to the US on which a zero reciprocal tariff will be applied, meaning the additional duty will be zero. For example, spices, tea, coffee and products made from them, coconut and coconut oil, vegetable wax, areca nut, Brazil nut, cashew nut, and chestnut. Many fruits and vegetables are also included,” he added as quoted by ANI.

‘No concessions on agricultural products’

He further stated that India has not offered any concessions in segments where the country remains self-sufficient.

Referring to agricultural produce, he said items such as soybean, rice, sugar, jowar, bajra, ragi, honey and groundnut have been kept outside the scope of concessions, adding that the interests of Indian farmers will be safeguarded even as market access is expanded for other sectors.

Also Read: India-US interim trade agreement: Here are the key points

Elaborating further the Goyal stated that several agricultural products grown by Indian farmers would be exported to the United States at zero duty, while clarifying that no tariff concessions have been extended to agricultural produce from US farmers entering the Indian market.

The Commerce Minister said that the agreement clearly states that genetically modified (GM) food will not be allowed into the country.

‘No loss to Indian MSMEs’

“I can state categorically and without any hesitation that India’s farmers, MSMEs, artisans, and craftsmen will not suffer any loss. On the contrary, India will benefit from greater access to the US market,” the minister said.

Also Read: Trump lifts 25% tariff on India over Russian oil imports after trade deal

Calling the trade deal a major push for MSMEs, particularly those employing large numbers of women and youth, Goyal said exports from labour-intensive sectors such as textiles and apparel, leather and footwear, toys, and gems and jewellery to the US are expected to scale up.

He added that this would lead to the creation of lakhs of jobs while strengthening domestic manufacturing.

‘Several Indian goods to get zero tariffs’

The minister also outlined key elements of the framework, noting that tariffs on a wide range of goods would be reduced to zero.

“Additionally, tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thereby further enhancing India’s export competitiveness and Make in India. India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors,” Goyal said.

Also Read: India fully protects sensitive wheat, rice, poultry under trade pact with US: Piyush Goyal

“These also include spices, tea, coffee, coconut oil, cashew nuts, and several fruits and vegetables such as avocado, banana, mango, pineapple, and mushrooms, along with select bakery products,” he added.

‘Opportunities for India’s growth trajectory’

Goyal said that the India-US trade deal opens up fresh opportunities and optimism for India’s growth trajectory. Referring to tariff rationalisation, he said the earlier 50 per cent reciprocal tariff has now been reduced to 18 per cent, which is lower than that faced by neighbouring countries and would provide significant support to Indian exporters. He added that the agreement brings new hopes and opportunities in India’s growth story.

Also Read: India, US seal trade deal framework; tariffs on Indian goods cut to 18%

Describing the announcement of the framework as historic, the minister said the day would be remembered as a landmark moment. He said discussions between Prime Minister Narendra Modi and US President Donald Trump, which began in February 2025, have resulted in a breakthrough that would be recorded as a historic development.

He added that the joint statement issued by the two countries offers renewed hope, enthusiasm, and resolve for Indian exporters.

The backdrop

In a joint statement, India and the United States announced that they have reached a framework for an Interim Agreement on reciprocal, mutually beneficial trade and have agreed on its terms. Earlier, on February 2, a phone call between Prime Minister Narendra Modi and US President Donald Trump led to the announcement of the conclusion of negotiations on the long-awaited trade deal.

The Trump administration had earlier imposed tariffs on major exporters to the US, including India and China. The bilateral trade agreement, formally proposed in February 2025, aims to more than double bilateral trade from the current USD 191 billion to USD 500 billion by 2030.