India–US Trade Deal To Benefit MSMEs, Farmers And Key Export Sectors, Says Govt In Lok Sabha

New Delhi, Mar 18 (KNN) India and the United States have announced framework for an interim trade deal aimed at enhancing bilateral trade and improving market access for key sectors, the government informed the Lok Sabha.

Minister of State for Commerce and Industry Jitin Prasada said the government is closely monitoring developments and remains engaged with the US on trade-related issues.

The two countries announced the agreement on February 2, 2026, followed by a joint statement on February 7. On the same day, the US removed the 25 percent additional tariffs imposed on certain Indian exports linked to India’s imports of Russian oil.

Subsequently, a ruling by the Supreme Court of the United States on February 20 invalidated reciprocal tariffs, leading to their withdrawal. However, the US has imposed a 10 percent tariff on certain products fr0m all countries through executive orders.

Under the proposed interim agreement, the US will provide preferential market access to a range of Indian goods, including textiles, leather and footwear, plastics, rubber, organic chemicals, handicrafts, and machinery.

In addition, tariffs on several products are expected to be reduced to zero percent, covering categories such as gems and diamonds, aircraft parts, generic pharmaceuticals, select machinery, and auto components.

The agreement is expected to significantly benefit MSME exports in sectors such as marine products, processed food, textiles, leather and handicrafts by improving access to the US market.

MoS Prasada said that the trade deal will also create new opportunities for Indian farmers and fishermen by boosting exports of products like basmati rice, spices, tea, coffee, oilseeds, marine products and certain fruits.

Further, agro-forestry and processed food segments, including vegetable saps, nuts, coconut products, and fruit-based items like juices and jams, are expected to gain fr0m improved access.

The government stated that sensitive sectors, including dairy and agriculture, have been safeguarded under the agreement.

India has also engaged with the World Trade Organization (WTO), seeking consultations with the US under the Agreement on Safeguards. Following the absence of consultations, India has reserved its right to suspend concessions under WTO provisions.

The government noted that it continues to assess global trade developments while working to protect domestic interests and expand export opportunities.