India Secured Best Trade Deal with US Among Competing Nations, Says Goyal

Commerce and Industry Minister Piyush Goyal on Saturday said India has secured the best trade deal with the United States among competing nations , highlighting the strong and multi-dimensional partnership between the two countries.

Speaking at the Raisina Dialogue 2026, Goyal said India and the US share a very powerful relationship , adding that occasional misunderstandings are natural in any partnership. He noted that the US remains the world’s largest economy with an estimated size of about USD 30 trillion.

Referring to ties between the leadership of the two countries, Goyal said US President Donald Trump has often spoken positively about India and Prime Minister Narendra Modi, reflecting the strength of bilateral relations. “Even within a family there can sometimes be misunderstandings. But overall, the India-US relationship remains extremely strong,” he said.

The minister’s remarks come as India and the US have finalised the framework for the first phase of a bilateral trade agreement . Under the arrangement, the US had earlier announced reducing reciprocal tariffs on Indian goods to 18 per cent. However, after the US Supreme Court struck down the tariffs, the Trump administration imposed a 10 per cent tariff on imports from all countries for 150 days beginning February 24.

According to the proposed agreement, India will eliminate or reduce tariffs on several US industrial goods and a range of agricultural products. These include dried distillers’ grains (DDGs), red sorghum used for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among other items.

In addition, India has indicated plans to purchase around USD 500 billion worth of US goods over the next five years , including energy products, aircraft and aircraft parts, precious metals, technology products and coking coal.

Goyal emphasised that the India-US partnership extends beyond trade , covering technology cooperation, defence collaboration, critical minerals partnerships and strong investment flows from the US into India.

The minister also addressed criticism from opposition parties, which have alleged that the India-US trade pact could compromise the interests of farmers. Rejecting the charge, Goyal said the government has concluded nine free trade agreements without compromising the interests of stakeholders.

Touching on the automobile sector, he said India has agreed to provide duty concessions under trade pacts with the United Kingdom and the European Union. While foreign carmakers may initially export a limited number of vehicles to test the Indian market, they would eventually need to manufacture in India as demand grows, which could help generate jobs and boost domestic manufacturing.