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India-US Trade Deal Cuts Tariffs, Boosts Tech & Jobs: Goyal

India and the United States have concluded a significant trade deal framework aimed at strengthening economic ties. The agreement reduces US tariffs on Indian goods from 50% to 18%, easing market access for key export sectors. A major focus is on expanding cooperation in advanced technologies, including GPUs and data center equipment, to accelerate India's digital ecosystem. The deal aims to more than double bilateral trade to $500 billion by 2030.

Key Points: India-US Trade Deal: Tariffs Cut, Tech & Market Access Boost

  • US tariffs on India cut from 50% to 18%
  • Focus on easing non-tariff barriers & compliance
  • Boosts trade in tech like GPUs & data center gear
  • Aims to double bilateral trade to $500B by 2030
3 min read

Addressing non-tariff barriers to tech cooperation, BTA focuses on facilitating trade: Piyush Goyal

India-US trade deal cuts tariffs to 18%, eases non-tariff barriers, and boosts cooperation in tech like GPUs and AI, aiming for $500B trade.

Addressing non-tariff barriers to tech cooperation, BTA focuses on facilitating trade: Piyush Goyal
"The India-US Trade Deal will not only provide greater access to the US market... but also give a big boost to our digital infrastructure. - Piyush Goyal"

New Delhi, February 7

India and the United States have strengthened their economic partnership through a wide-ranging bilateral trade deal aimed at easing market access, reducing trade frictions, and expanding cooperation in advanced technologies.

Commerce and Industry Minister Piyush Goyal said that the India-US trade deal reinforces a shared commitment to facilitating trade, expanding market opportunities, and strengthening bilateral economic engagement.

With several of non-tariff barriers set to be addressed, besides US tariffs on India reduced to 18 per cent from 50 per cent, the minister said it will be a big win for Indian exporters.

Compliances will come down, procedure delays will reduce, employment opportunities and market access will increase, the minister said in a post on X.

Under this trade agreement, India and the United States will significantly increase trade in technology products, including Graphics Processing Units (GPUs) and other goods used in data centres, and expand joint technology cooperation.

Piyush Goyal said that technology cooperation will accelerate India's digital and AI ecosystem and increase trade in products such as GPUs and data centre equipment.

Additionally, it will lower costs for Indian companies by improving access to cutting-edge US technologies, thereby attracting greater investment, skill development, jobs, and manufacturing partnerships.

"The India-US Trade Deal will not only provide greater access to the US market for Indian products but also support our labour-intensive sectors. Additionally, it will give a big boost to our digital infrastructure," the commerce minister posted on X.

Reduced tariffs on India are gains for textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, and artisanal products exporters.

The US and India announced in a joint statement that they have reached a framework for an Interim Agreement on reciprocal, mutually beneficial trade (the Interim Agreement) and have agreed on its terms.

The framework reaffirms the countries' commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market-access commitments and support for more resilient supply chains.

Furthermore, both countries decided to address non-tariff barriers affecting bilateral trade.

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 much-awaited trade deal.

The Trump administration had imposed tariffs on major exporters to the US, including India and China. There was a 50 per cent tariff on goods from India entering the United States since August 2025. The tariffs have now been reduced to 18 per cent following the leaders' recent phone call.

The BTA, formally proposed in February 2025, seeks to more than double bilateral trade, from the current USD 191 billion to USD 500 billion by 2030.

- ANI

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Reader Comments

P
Priya S
The tech cooperation part is exciting. Better access to GPUs and data centre tech can really boost our AI startups and digital infrastructure. Attracting investment and creating skilled jobs is exactly what we need. Well done to the negotiators!
R
Rohit P
Doubling trade to $500 billion by 2030 is an ambitious target. While the deal looks good on paper, the real test will be in its execution. We've seen promises before. Hope this time the benefits actually reach our MSMEs and small artisans.
S
Sarah B
As someone working in the leather industry, the reduced tariffs are a welcome change. It should make our products more competitive in the US market. Fingers crossed the "eased procedures" are real and not just more bureaucratic hurdles with a new name.
V
Vikram M
Good move strategically. Strengthening ties with the US is crucial, especially in technology. However, we must ensure this doesn't make us overly dependent. Our focus should remain on building our own domestic capabilities and supply chain resilience too.
K
Kavya N
Finally addressing non-tariff barriers! So much of our trade gets stuck in compliance and clearance delays. If this deal can genuinely simplify that, it will be a bigger win than just the tariff cut. Hope it works out for our farmers and pharma sector as well.

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