New Delhi, Feb 3 (PTI) Commerce and Industry Minister Piyush Goyal on Tuesday said the India-US trade agreement will open up huge opportunities for domestic farmers, MSMEs, entrepreneurs, and skilled workers and promote Make in India initiative.

India and the US have agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.

Goyal said it will help India get technology from the US.

"This agreement unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, Design in India for the world, and Innovate in India for the world," Goyal said in a post on social media.

He added that the development reflects the power of two like-minded, fair-trading democracies working together for shared prosperity.

"Both India and US are natural allies and our partnership will co-create technologies, co-develop solutions, and work together for peace, growth, and a brighter future for India and US," he added.

Terming it a "landmark trade deal", Commerce Secretary Rajesh Agrawal too said that it will unlock shared prosperity, innovation and growth for two natural democratic partners.

"Congratulations to the people of India and the US," he said.

The announcement is important as several labour-intensive sectors like textiles, apparel, leather and marine were facing challenges to export goods to the US as they they face 50 percent tariffs.

Exporters and experts are waiting for the USA's executive order to get a more clear picture about the deal.

Think tank GTRI said clarity is required on which products are covered under the deal and the applicable timelines.

Hailing the pact, Aqeel Panaruna, Chairman, Florence Shoe Company and Director, Grand Atlantia Panapakkam SEZ PvT Ltd, said it Will strengthen India's global leadership.

Federation of Indian Export Organisations ( FIEO) President S C Ralhan said that it would be a game-changer for the competitiveness of Indian exports vis-a-vis other Asian suppliers.

"It is expected to lead to an immediate and substantial release of orders that were earlier put on hold, particularly in labour-intensive sectors such as apparel, textiles, leather and footwear, where global buyers typically lock in summer season sourcing by December," Ralhan said.

India's merchandise exports to the US declined 1.83 per cent to USD 6.88 billion in December 2025 due to high tariffs imposed by America, according to Commerce Ministry data.

Exports also contracted in September and October last year. However, it rose 22.61 per cent in November.

Imports grew 7.57 per cent to USD 4.03 billion in December 2025.

During the April-December period of this fiscal year, the country's exports to the US increased 9.75 per cent to USD 65.87 billion, while imports rose 12.85 per cent to USD 39.43 billion.

The US has imposed a sweeping 50 per cent tariff on Indian goods entering American markets from August 27. PTI RR NB NB

India-US trade deal cuts reciprocal tariffs to 18%, aiming to boost exports and market access while awaiting US implementation details. A bilateral arrangement lowers the reciprocal tariff on Indian goods to 18% from 25%, addressing prior 50% US duties that constrained labour-intensive exports, and aims to expand market access for farmers, MSMEs and sectors such as textiles, apparel, leather and footwear while facilitating technology transfer under Make in India; final operative scope and timelines depend on forthcoming US implementation measures, including an executive order specifying covered products and enforcement modalities.