India–US trade pact opens $30 trillion export market: Goyal

The reduction is expected to enhance India’s global competitiveness while giving a further boost to the Make in India initiative. 

Metro India News | new delhi

India’s proposed interim trade agreement with the United States is set to unlock access to a massive USD 30 trillion market for Indian exporters, with major gains expected for MSMEs, farmers and fishermen, Commerce and Industry Minister Piyush Goyal said on Saturday.

Highlighting the significance of the framework reached between the two countries, Goyal said the pact would substantially expand India’s export footprint in the world’s largest economy and generate lakhs of new employment opportunities, particularly for women and youth. He credited the development to what he described as decisive leadership at the national level, noting that the agreement signals growing economic alignment between India and the US.

Under the proposed framework, the United States is expected to reduce reciprocal tariffs on a wide range of Indian goods to around 18 per cent. This move is likely to create fresh opportunities for sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal items and select categories of machinery. These sectors form a significant share of India’s labour-intensive exports.

In addition, import duties will be brought down to zero on several key items, including generic pharmaceuticals, gems and diamonds, and aircraft parts. The reduction is expected to enhance India’s global competitiveness while giving a further boost to the Make in India initiative. India will also benefit from exemptions on aircraft components, tariff rate quotas on auto parts and negotiated outcomes in generic drugs, resulting in measurable export gains.

At the same time, the minister underlined that India’s core interests have been safeguarded. Sensitive agricultural and dairy products — including maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, certain vegetables and meat — have been fully protected to ensure the security of farmers and rural livelihoods.

‘Boeing major aircraft parts buyer from India’

US-based Boeing is a large buyer of aircraft parts from India and is looking at the country as its largest foreign original equipment manufacturer base for components going forward, Commerce and Industry Minister Piyush Goyal said on Saturday.

Under an interim trade agreement with India, the United States has agreed to remove tariffs on certain aircraft and aircraft parts originating from India, a move expected to support higher exports and closer trade ties.

“Already Boeing and Airbus are large buyers of aircraft parts from India. I am told both these companies are looking at India as the largest foreign OEM for parts going forward. I have had conversations with the top board and CEO of both companies, and there is a lot of excitement about the India-US partnership,” Goyal told reporters in New Delhi.

He said India has become a key market for Boeing, with more than 265 commercial and military aircraft currently operating in the country.

Boeing works with over 325 suppliers in India, and its annual sourcing from the country is valued at more than USD 1.25 billion. The sourcing includes a wide range of aircraft components and services.

Airbus is also increasing its sourcing from India. The European aircraft manufacturer currently sources components and services worth around USD 1.4 billion and aims to raise this to USD 2 billion by 2030, reflecting India’s growing importance in the global aerospace supply chain.