New Delhi, February 7: India and the United States have finalized an interim trade agreement, which will reduce American tariffs on Indian goods by 18 percent. Prime Minister Narendra Modi praised this development on Saturday, calling it “good news” for both nations.
In a post on the social media platform X, PM Modi expressed, “Very good news for India and the United States. We have agreed on a framework for an interim trade agreement between our two great nations. I thank President Trump for his personal commitment to strengthening our bilateral ties.”
He noted that this framework reflects the deepening trust and dynamism in their partnership. It strengthens the “Make in India” initiative by opening new opportunities for hardworking farmers, entrepreneurs, MSMEs, startup innovators, fishermen, and others. This will create significant employment opportunities for women and youth.
PM Modi emphasized that both India and the United States are committed to promoting innovation, and this framework will deepen their investment and technology partnership. He added, “This framework will also strengthen robust and reliable supply chains and contribute to global growth. As India progresses towards becoming a developed nation, we are committed to creating global partnerships that are future-oriented, empower our people, and contribute to shared prosperity.”
Earlier, Commerce and Industry Minister Piyush Goyal stated that this trade agreement will help India and the US maintain a focus on deepening economic cooperation, demonstrating their shared commitment to sustainable growth for their people and businesses.
India has prepared a framework for an interim agreement with the United States. This framework also paves the way for the removal of tariffs on various Indian goods, contingent on the successful outcome of the interim agreement. The list includes generic medicines, gems and diamonds, and aircraft parts—sectors where India has a strong global presence and high demand in the US.
Washington will also remove tariffs on certain Indian aircraft and aircraft parts. These duties were previously imposed under national security declarations related to aluminum, steel, and copper imports.
India will receive a preferential tariff rate quota for automotive parts, which fall under the US national security tariffs on automobiles and auto components.