PM Modi hails India-US interim trade framework, says it will contribute to global growth

Prime Minister Modi's remarks came after India and the United States agreed on a framework for an Interim Trade Agreement. 

Prime Minister Narendra Modi on Saturday hailed the India-US interim trade framework, saying it will contribute to global growth.

Prime Minister Modi's remarks came after India and the United States agreed on a framework for an Interim Trade Agreement. In a post on X, Union Commerce Minister Piyush Goyal said the agreement would open access to a USD 30 trillion market for Indian exporters and create lakhs of new job opportunities, particularly for women and youth.

Highlighting the significance of the framework, Prime Minister Modi said it would strengthen the ‘Make in India’ initiative by opening new avenues for India’s hardworking farmers, entrepreneurs, MSMEs, startup innovators, fishermen and other stakeholders.

In a post on X, Prime Minister Modi said, "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. 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."

Prime Minister Modi added that the framework would further deepen investment and technology partnerships between the two countries, strengthen resilient and trusted supply chains, and contribute to global growth.

Inside US-India pact: Check key terms of US-India interim agreement

Under the framework, India has agreed to cut or remove tariffs on all industrial goods from the United States, as well as on a broad range of American food and agricultural products. These include dried distillers’ grains, red sorghum used for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, spirits, and several other items.

In return, the United States will impose an 18 per cent reciprocal tariff on goods originating from India under the relevant executive order. This tariff will apply to sectors such as textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, handicrafts, and certain types of machinery.

The framework also provides relief to India through the removal of US tariffs on specific Indian aircraft and aircraft components that were earlier imposed under national security measures related to aluminium, steel, and copper. Additionally, India will receive preferential tariff rate quotas for automotive parts, in line with US national security requirements.

ALSO READ | US, India unveil framework for interim trade agreement; Check what's in the deal