India Secures Competitive Advantage in US Market with New Tariff Framework
Commerce and Industry Minister Piyush Goyal has asserted that Indian exporters will benefit from a competitive advantage in the United States market under the recently established interim trade framework. He emphasized that an 18 percent tariff on Indian goods is favorable when compared to the higher duties imposed on other countries, positioning India more advantageously in global trade dynamics.
Executive Order Reduces Tariffs, Easing Trade Tensions
This statement follows US President Donald Trump's executive order, which reduced tariffs on Indian imports to 18 percent. The move effectively rolls back a 25 percent additional duty imposed in August 2025, which had been layered on top of an earlier 25 percent reciprocal tariff. Previously, this combination pushed effective duties on some Indian exports to as high as 50 percent, creating significant strain in bilateral trade relations, partly due to New Delhi's purchases of Russian oil.
In an exclusive interview with PTI, Goyal addressed criticism that India conceded too much by accepting the 18 percent rate while offering duty-free access to American goods. He dismissed these concerns, pointing out that China faces tariffs of 35 percent, and several other countries are subject to duties of 19 percent or more. This comparison underscores India's relatively favorable position in the US market.
Safeguards and Broader Trade Agreements
Goyal clarified that the short document outlining the interim framework does not capture the full scope of the agreement. He insisted that adequate safeguards have been incorporated, particularly to protect Indian farmers. I am very excited about the future of India, Goyal stated, highlighting the broader context of India's international trade engagements.
He elaborated on India's strategic trade negotiations, noting that the country has concluded nine agreements across the world, covering different continents and 38 countries. Thirty-seven of them are developed, he explained, with Mauritius being an exception due to its largely Indian-origin population that does not compete with India. These countries represent a substantial share of global GDP and are rich economies that largely complement rather than compete with India.
Economic Growth and Future Prospects
Goyal framed India's trade negotiations as being conducted from a position of strength, leveraging the country's economic growth trajectory. That's what is our negotiating strength, he remarked, noting that India is currently a $4 trillion economy but is projected to expand to $30–35 trillion by 2047. This delta of opportunity, from 4 trillion to 30-35 trillion, represents the future India offers to global partners.
He added that going international will unlock huge potential for Indian farmers, fishermen, workers, businesses, investors, and MSMEs, creating numerous job opportunities. By opening large markets in addition to India's own fast-growing economy, the country can achieve economies of scale, making high-quality manufacturing and service delivery a hallmark of India. This is the path to Viksit Bharat 2047, Goyal concluded, envisioning a developed India by 2047 through strategic global engagements.
