PM Modi Hails India–US Trade Deal, Calls It ‘Great News’ As Both Nations Announce Framework For Interim Agreement

India–US Interim Trade Deal Framework Announced; PM Modi Calls It ‘Great News’ for Both Nations

Prime Minister Narendra Modi on Saturday welcomed the announcement of a framework for an Interim Trade Agreement between India and the United States, calling it a major step forward in strengthening bilateral economic ties and global partnerships.

In a post on X, PM Modi said the agreement reflects the “growing depth, trust and dynamism” of the India–US partnership. He thanked US President Donald Trump for his personal commitment to advancing ties between the two countries, noting that the framework would strengthen Make in India and open new opportunities for farmers, MSMEs, startups, fishermen, women, and youth.

“This framework will generate large-scale employment, deepen investment and technology partnerships, and strengthen resilient supply chains that contribute to global growth,” the Prime Minister said, adding that the deal aligns with India’s vision of building a Viksit Bharat through future-oriented global partnerships.

Tariff Cuts, Market Access At The Core Of The Deal

Union Commerce and Industry Minister Piyush Goyal also hailed the announcement, describing it as a landmark achievement under the leadership of PM Modi. He said the agreement would open access to a $30 trillion US market for Indian exporters, particularly benefiting MSMEs, farmers, fishermen, women, and youth.

As part of the framework, the United States will slash reciprocal tariffs on Indian goods to 18 per cent, offering major export opportunities in sectors such as textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal products, and select machinery. Additionally, tariffs will be reduced to zero on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts.

Key Commitments from Both Sides

• India to Cut Tariffs: India will eliminate or reduce tariffs on all US industrial goods and a broad range of food and agricultural products.

• Expanded Agricultural Access: Products covered include dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits.

• US Reciprocal Tariffs: The United States will apply a reciprocal tariff of 18% on Indian-origin goods under the relevant executive order.

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• Future Tariff Removal: The US has committed to removing tariffs on several product categories after the successful conclusion of the Interim Agreement.

• Relief on Aircraft Components: US tariffs on certain Indian aircraft and aircraft parts imposed under national security-related proclamations on aluminium, steel, and copper will be removed.

• Preferential Access for Auto Parts: India will receive preferential tariff rate quotas for automotive parts, in line with US national security requirements.

Focus on Supply Chains, Technology, and Energy Trade

Beyond tariffs, the agreement outlines enhanced cooperation on supply chain resilience, export controls, investment reviews, and addressing non-market policies of third countries. India has also expressed its intention to purchase USD 500 billion worth of US energy products, aircraft, technology products, precious metals, and coking coal over the next five years.

Both countries committed to expanding digital trade, strengthening technology cooperation, including data centre-related technologies, and addressing non-tariff barriers affecting bilateral commerce.

The two sides said they would promptly implement the framework and work toward finalising the Interim Agreement, with the long-term goal of concluding a comprehensive and mutually beneficial Bilateral Trade Agreement.

(This article has been syndicated from ANI, Just edited for clarity)