New Delhi, February 7: India and the United States have finalized an interim trade agreement that will reduce American tariffs on Indian goods by 18 percent. Prime Minister Narendra Modi praised the agreement on Saturday, calling it “very good news” for both nations.
On the social media platform X, Prime Minister Modi stated, “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 added, “This framework reflects the deepening trust and dynamism of our partnership. It strengthens ‘Make in India’ by opening new opportunities for hardworking farmers, entrepreneurs, MSMEs, startup innovators, fishermen, and others. It will create substantial employment for women and youth. India and the US are committed to promoting innovation, and this framework will bolster our investment and technology partnership.”
PM Modi emphasized that the trade agreement framework would also enhance strong and reliable supply chains and contribute to global growth. He stated that as India progresses towards becoming a “developed nation,” it is committed to forging global partnerships that are future-oriented, empower our people, and contribute to shared prosperity.
Earlier, Union Commerce and Industry Minister Piyush Goyal noted that this trade agreement would strengthen economic cooperation between India and the US. It reflects a shared commitment to sustainable development for our people and businesses.
In a post on X, Goyal mentioned, “Under the trade agreement framework, the US will reduce mutual tariffs on Indian goods to 18 percent, creating significant market opportunities in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, handicrafts, and select machinery.”
Goyal further explained that tariffs on various goods, including generic medicines, gems and diamonds, and aircraft parts, would be reduced to zero, enhancing India’s export competitiveness and boosting ‘Make in India.’
He also shared that India would benefit from exemptions on aircraft parts under Section 232, tariff rate quotas on auto parts, and negotiations on generic pharmaceuticals, leading to solid export gains in these sectors. Additionally, the agreement demonstrates India’s commitment to protecting farmers’ interests and sustaining rural livelihoods by fully safeguarding sensitive agricultural and dairy products, such as corn, wheat, rice, soybeans, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables, and meat.
Commerce and Industry Minister Piyush Goyal concluded that this agreement will help India and the US focus on working together to deepen economic cooperation, reflecting a shared commitment to sustainable development for our people and businesses.
