New Delhi, Feb 7: Defence Minister Rajnath Singh on Saturday welcomed the interim framework for the US-India trade agreement, highlighting its benefits, including expanded exports, strengthened labour-intensive sectors, and job creation.
Rajnath Singh also assured that farmers’ interests are safeguarded under the deal, emphasizing the government’s commitment to economic empowerment.
“Under the visionary leadership of PM Narendra Modi, India and the US have agreed on a framework for an Interim Trade Agreement. This landmark framework represents a strategic milestone in India’s economic journey. It will significantly expand export opportunities, strengthen labour-intensive sectors, attract high-quality investments, and create large-scale employment,” Rajnath Singh said.
He added, “The interests of our farmers and agriculture have been safeguarded. I express my gratitude to PM Modi for his tireless efforts in unlocking historic avenues for growth, employment, and long-term economic empowerment.”
India and the United States announced the framework for an Interim Agreement on reciprocal, mutually beneficial trade, a step toward advancing broader US-India Bilateral Trade Agreement (BTA) negotiations launched by Prime Minister Narendra Modi and President Donald Trump in February 2025, according to a joint statement released by the White House and the Commerce Ministry.
Under the agreement, the US will apply a reciprocal tariff rate of 18% on Indian-origin goods, including textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home decor, artisanal products, and select machinery.
The US will also remove tariffs on certain Indian aircraft and aircraft parts that were previously imposed for national security reasons.
India, in turn, will eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among others.
As part of the deal, India also plans to purchase USD 500 billion worth of US energy products, aircraft and parts, precious metals, technology products, and coking coal over the next five years. (Agencies)
