India-US Trade: How much will farmers and entrepreneurs benefit from the trade deal? The government claims it will boost the Make in India initiative.

Union Commerce and Industry Minister Piyush Goyal has said that the new trade deal between India and the United States will open up tremendous opportunities for Indian farmers, small and medium enterprises (MSMEs), entrepreneurs, and skilled workers. It will also give a significant boost to the Make in India campaign. Under this agreement, the US has agreed to reduce the reciprocal tariff on Indian goods from 25% to 18%. This information was shared by US President Donald Trump after a phone conversation with Prime Minister Narendra Modi.

'Will help in accessing new and modern technology.'

Piyush Goyal said that this deal will help India access new and modern technology from the US. He wrote on social media that now Indian farmers and industries will be able to manufacture in India for the world, design in India for the world, and innovate in India for the world. He described it as a partnership between two like-minded democratic nations that will work together towards peace, development, and a prosperous future.

'Good news for Made in India products - Sitharaman'

Finance Minister Nirmala Sitharaman also wrote in a post on X (formerly Twitter): "Good news for Made in India products. They will now attract a lower tariff of 18%. Thanks to the leadership of Prime Minister Narendra Modi and the US President for this development. The people of both our great democracies will benefit from this."

This is a historic agreement - Rajesh Agarwal

Commerce Secretary Rajesh Agarwal also called the agreement historic and said that it will bring innovation, growth, and shared prosperity to both India and the US. This deal is also important because labor-intensive sectors such as textiles, ready-made garments, leather, footwear, and marine products were facing difficulties due to high taxes (around 50%) in the US. These sectors are now expected to receive significant relief.

When will the deal be implemented?

However, the think tank GTRI has said that it is still necessary to clarify which products will be covered by this exemption and when the deal will be fully implemented. Meanwhile, S.C. Ralhan, President of the Federation of Indian Export Organisations (FIEO), said that this deal will prove to be a game-changer for Indian exporters. It will particularly strengthen India's position compared to other Asian countries. He stated that many foreign buyers who had put orders on hold could now resume them immediately, especially in sectors such as apparel, textiles, leather, and footwear. According to the data, India's exports to the US had fallen to $6.88 billion in December 2025 due to higher tariffs, although they had shown strong growth in November. The new agreement is expected to boost exports again in the coming months.