Piyush Goyal addresses media on interim trade deal:India, US aim for $500 billion trade; New Delhi commits to buying US energy

India and the United States on Friday released the framework for an Interim Trade Agreement (ITA), under which US tariffs on Indian goods have been reduced by half to 18%. Washington has also lifted the additional 25 per cent duty imposed on India over its purchase of Russian oil. Both countries said the framework would be implemented soon while negotiations continue toward a Comprehensive Bilateral Trade Agreement (BTA). According to a joint statement, the interim pact will advance BTA discussions that began on February 13, 2025. The agreement aims to expand market access, strengthen supply chains, and reduce trade barriers between the two strategic partners. As part of the deal, India will eliminate or reduce tariffs on all US industrial goods. Union Commerce Minister Piyush Goyal said the framework would open a $30 trillion market for Indian exporters, with micro, small and medium enterprises (MSMEs), farmers, and fishermen expected to benefit the most. He added that the agreement could create lakhs of new jobs for women and youth. India has also committed to purchasing $500 billion worth of American products over the next five years, including energy resources, aircraft and parts, precious metals, technology goods, and coking coal. Removing non-tariff barriers Goyal said both countries would frame rules to ensure that the benefits of the agreement primarily accrue to India and the US rather than third countries. The two sides will also work toward removing long-standing non-tariff barriers in bilateral trade. India has promised to address regulatory hurdles affecting US medical devices and simplify import licensing processes for American information and communication technology (ICT) products. New Delhi will also review whether US or international standards and testing requirements can be accepted in select sectors within six months of the agreement. Additionally, India has agreed to resolve persistent barriers impacting US food and agricultural exports.