PM Modi Hails India-US Trade Deal Framework, Calls It a Sign of Growing Trust and Dynamism
New Delhi, Feb 7: Prime Minister Narendra Modi on Saturday welcomed the announcement of a framework for a bilateral trade agreement between India and the United States.
In a post on X, the Prime Minister said, “Great news for India and the USA! We have agreed on a framework for an Interim Trade Agreement between our two nations. I thank President Trump for his personal commitment to strengthening ties between our countries. This framework reflects the growing depth, trust, and dynamism of our partnership. It supports ‘Make in India’ by opening new opportunities for farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen, and more. It will generate large-scale employment for women and youth and deepen investment and technology partnerships between our nations.”
He added, “This framework will also strengthen resilient and trusted supply chains and contribute to global growth. As India moves towards building a Viksit Bharat, we remain committed to global partnerships that are future-oriented, empower our people, and promote shared prosperity.”
Union Commerce Minister Piyush Goyal also welcomed the framework, saying, “Under PM Modi’s decisive leadership, India has reached a framework for an Interim Agreement with the US. This will open a $30 trillion market for Indian exporters, especially MSMEs, farmers, and fishermen. The increase in exports will create lakhs of new job opportunities for women and youth. As part of this framework, the US will cut reciprocal tariffs on Indian goods to 18%, offering major opportunities in textiles, apparel, leather, footwear, plastics, rubber, organic chemicals, home decor, artisanal products, and certain machinery. Tariffs will also drop to zero on goods including generic pharmaceuticals, gems, diamonds, and aircraft parts, further boosting India’s export competitiveness and Make in India.”
Earlier, India and the US released a joint statement outlining the framework of the bilateral trade deal. The Interim Agreement is expected to mark a historic milestone, demonstrating a shared commitment to balanced trade based on mutual interests and concrete outcomes.
Under the framework, India will eliminate or reduce tariffs on US industrial goods and a wide range of food and agricultural products, including dried distillers’ grains, red sorghum, tree nuts, fruits, soybean oil, and wine and spirits. The US will apply a reciprocal tariff of 18% on Indian goods in sectors like textiles, leather, plastics, chemicals, home decor, artisanal products, and select machinery. Subject to the successful conclusion of the Interim Agreement, the US will remove reciprocal tariffs on goods including generic pharmaceuticals, gems, diamonds, and aircraft parts.
The framework also provides for the removal of US tariffs on certain Indian aircraft and parts imposed under national security proclamations, and India will receive a preferential tariff quota for automotive parts. Negotiated outcomes for generic pharmaceuticals and pharmaceutical ingredients are also expected. Both countries committed to providing preferential market access in sectors of mutual interest and to establishing rules of origin to ensure the benefits accrue primarily to India and the US.
The statement said both sides will address non-tariff barriers affecting bilateral trade, including US medical devices, ICT goods, and food products, and review acceptance of international standards within six months of the agreement. Cooperation on standards and conformity assessment procedures will improve compliance ease, and both sides will work to expand market access through ongoing BTA negotiations.
India expressed its intention to purchase USD 500 billion worth of US energy products, aircraft, precious metals, technology products, and coking coal over the next five years. Both countries also committed to enhancing trade in technology products, including GPUs for data centers, expanding joint tech cooperation, and establishing mutually beneficial digital trade rules.
Both nations said they would promptly implement the framework and work toward finalizing the Interim Agreement, aiming for a comprehensive Bilateral Trade Agreement aligned with the agreed roadmap.(Agencies)
