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The India-US trade deal is expected to unlock fresh investment flows and export opportunities across a wide range of sectors, including artificial intelligence, semiconductors, critical minerals, engineering goods, and labour-intensive industries, Commerce and Industry Minister Piyush Goyal said on Tuesday.

Addressing concerns around the timing of the announcement, Goyal said the United States took the lead in announcing the agreement as it involved a rollback of tariffs imposed earlier. “The US tweeted first because they had levied reciprocal tariffs, and they had to lower it so it is natural since they had to lower tariffs. President Trump had to inform them,” he said.

Goyal added that the agreement reflects improving bilateral ties and mutual respect between the two leaders. “I want to thank Donald Trump, who respected PM Modi’s friendship,” he said, adding that “going forward, US-India ties will improve” and “India-US ties will strengthen further, and ensure a bright future.”

Investment Push and Sectoral Gains 

According to Goyal, the deal is expected to attract US investments into future-facing sectors. “AI, semiconductors, critical minerals, these sectors will get investments from the US,” he said, pointing to India’s growing role in global supply chains.

The agreement is also likely to benefit export-oriented and employment-heavy industries. “Labour-intensive sectors, IT sector are happy with the deal,” Goyal said, adding that “engineering sector, MSME sector, textile sector, gems and jewellery, marine goods will get many opportunities due to the deal.”

He further said that “auto components, aircraft parts, all engineering goods, textile, leather, and marine will get significant opportunities under the trade deal.”

India’s merchandise exports to the US crossed $78 billion in FY25, making it India’s largest trading partner. Sectors such as engineering goods, electronics, textiles, gems, and jewellery together account for more than 60% of India’s exports to the US, according to the commerce ministry data.

‘Sensitive agri items, dairy protected’

On concerns around agriculture, Goyal said sensitive sectors had been protected. “PM has always taken care of the concerns of agri and dairy sectors,” he said. “We have never compromised on the interests of farmers, those linked to the dairy sector.”

He reiterated that “sensitive agri items, dairy protected in the US trade deal.”

India has traditionally maintained strict safeguards on dairy and select agricultural products due to livelihood concerns, with the sector supporting over 80 million rural households.

Calling the agreement a long-term positive for the economy, Goyal said, “The trade deal is a step forward for India’s bright future. This isn’t just a trade deal but a sign of India’s great future and faster economic growth.”

He added that the response across industries has been upbeat, stating that “all sectors in India are jubilant with the trade deal.”

Goyal hinted at a joint statement by India and the US about the deal.