New Delhi: Prime Minister Narendra Modi on Saturday hailed the India-US trade framework and underscored that it reflects the growing “depth and dynamism” of the partnership between the two countries and will also strengthen trusted supply chains besides contributing to “global growth”.
India and the US have signed an interim trade agreement that cuts US tariffs on Indian goods to 18 per cent. As part of the deal, the US has withdrawn the additional 25 per cent duty it had imposed on Indian imports.
Welcoming the trade framework, PM Modi wrote on X, “Great news for India and USA! 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 robust ties between our countries.”
Jobs for women, youth
He underlined that the trade framework will open new opportunities for India’s farmers, entrepreneurs, MSMEs, fishermen, and more, alongwith creating several new employment opportunities for women and youngsters.
“This framework reflects the growing depth, trust and dynamism of our partnership. It strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more. It will generate large-scale employment for women and youngsters,” he added.
Prime Minister Modi stressed that India and the United States share a commitment to promoting innovation and this framework “will further deepen investment and technology partnerships between us”.
“This framework will also strengthen resilient and trusted supply chains and contribute to global growth. As India moves forward towards building a Viksit Bharat, we remain committed to building global partnerships that are future-oriented, empower our people and contribute to shared prosperity,” he said in his post.
Inside India-US trade deal
Earlier today, Union Commerce and Industry Minister Piyush Goyal announced that India has reached a framework for an interim agreement with the US under the “decisive leadership” of PM Modi.
As part of this framework, the US will slash reciprocal tariffs on Indian goods to 18 percent, providing a huge market opportunity in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal products, and select machinery in the world’s largest economy, Goyal said on X.
Additionally, tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts, thereby further enhancing India’s export competitiveness and Make in India, he added.
As part of the framework, India will also get exemptions on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors.
Goyal further underscored that the agreement reflects India’s commitment to “safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting” sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain vegetables, meat, etc.
He said that the agreement will help India and the US remain focused on working together to further deepen economic cooperation, reflecting shared commitment to sustainable growth for our people and businesses.