India–US Trade Deal: Interim Agreement to Create Opportunities for Farmers, MSMEs and Youth, Says PM Modi
India–US trade deal: Prime Minister Narendra Modi on Friday described the interim trade agreement between India and the United States as “great news”, stating that it will open up fresh opportunities for farmers, entrepreneurs, MSMEs, startup innovators and young people seeking employment.
Reacting to the announcement made by Union Commerce Minister Piyush Goyal, the Prime Minister took to social media platform X to thank US President Donald Trump for his personal commitment to strengthening bilateral ties between the two countries.
In his post, Modi said the interim trade framework reflects the “growing depth, trust and dynamism” of the India–US partnership and will play a key role in boosting economic cooperation.
‘Framework reflects growing trust and partnership’
“We have agreed on a framework for an Interim Trade Agreement between our two great nations,” Modi said. “This framework reflects the growing depth, trust and dynamism of our partnership.”
The Prime Minister added that the agreement would strengthen the ‘Make in India’ initiative by opening new avenues for India’s farmers, MSMEs, entrepreneurs, startup innovators and fishermen, while also generating large-scale employment opportunities for women and youth.
He further noted that India and the US share a strong commitment to innovation and that the interim agreement would help deepen investment and technology partnerships, strengthen resilient supply chains and contribute to global economic growth.
“As India moves forward towards building a Viksit Bharat, we remain committed to building future-oriented global partnerships that empower our people and promote shared prosperity,” Modi added.
Interim trade deal details
India and the United States jointly announced the interim trade framework on 6 February, ahead of negotiations for a full Bilateral Trade Agreement (BTA). The framework includes commitments from both sides to expand trade and reduce tariff barriers.
Under the agreement, India will eliminate or reduce tariffs on a wide range of US industrial goods and agricultural products, including dried distillers’ grains (DDGs), fresh and processed fruits, red sorghum for animal feed, soybean oil, tree nuts, wine and spirits.
The United States, on its part, will apply a reduced reciprocal tariff rate of 18% on several Indian exports, with scope for further reductions as negotiations progress. Products benefiting from the lower tariffs include artisanal goods, select machinery, home décor items, leather and footwear, organic chemicals, plastics, rubber, textiles and apparel.
In addition, the US will remove reciprocal tariffs on aircraft parts, gems and diamonds, and generic pharmaceuticals.
Commerce Minister Piyush Goyal said the interim agreement is expected to open access to a $30 trillion market for Indian exporters, particularly benefiting MSMEs, farmers and fishermen, while creating lakhs of new employment opportunities, especially for women and youth.
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