New Delhi: Prime Minister Narendra Modi welcomed the announcement of an Interim Trade Agreement framework between India and the United States, describing it as a major step that highlights the maturity and momentum of relations between the two nations. He stated that the understanding reached by both sides demonstrates increasing depth, trust and dynamism in bilateral cooperation.
The Prime Minister noted that the framework would open fresh opportunities for Indian farmers, entrepreneurs, micro and small enterprises, start-up innovators and the fisheries sector. According to him, the arrangement would strengthen the Make in India initiative and generate large scale employment, particularly for women and young people across the country. He also expressed appreciation for the commitment shown by the American leadership towards building stronger economic ties with New Delhi.
Officials from both sides confirmed that work will now continue toward finalising a mutually beneficial Bilateral Trade Agreement based on the interim structure. The framework is expected to improve supply chains, encourage investment flows and contribute to broader global economic growth while supporting India’s long term goal of becoming a developed nation.
The trade understanding follows months of discussions held against the backdrop of tariff related concerns. Under the arrangement, reciprocal duties on Indian goods entering the US market are set to be reduced to 18 percent. A number of products, including generic medicines, gems and diamonds, and aircraft components, will enjoy zero tariffs, creating new export possibilities.
Indian sectors such as textiles and apparel, leather goods, footwear, plastics, rubber products, organic chemicals, home décor items and select machinery are likely to benefit from expanded access. At the same time, sensitive agricultural and dairy commodities like wheat, rice, maize, milk, poultry, meat and certain vegetables have been kept outside tariff concessions to safeguard domestic farmers and rural livelihoods.
Union Commerce and Industry Minister Piyush Goyal described the framework as a significant opening for Indian exporters seeking entry into the massive American marketplace. He said wider access could lead to the creation of lakhs of jobs as demand for Indian products rises.
As part of the reciprocal approach, India will also lower duties on several American goods, including animal feed, tree nuts, processed fruits, soybean oil, wine and spirits. The mutual market opening is expected to deepen commercial engagement and mark a new phase in India-US economic partnership.
