PM Modi Hails India–US Interim Trade Agreement As Boost For Manufacturing & Jobs

Prime Minister Narendra Modi on Saturday welcomed the newly announced India-US interim trade agreement, describing it as a landmark step in strengthening bilateral economic ties, supporting domestic industries, and creating employment opportunities.

In a post on X, PM Modi said the framework reflects the "growing depth, trust and dynamism" of the partnership between the two nations. He thanked US President Donald Trump for his commitment to robust ties and highlighted how the deal would open new avenues for farmers, entrepreneurs, MSMEs, startups, and fishermen.

"It strengthens 'Make in India' and will generate large-scale employment for women and youngsters," Modi wrote, adding that the agreement would also bolster resilient supply chains and contribute to global growth as India advances towards its vision of a Viksit Bharat.

Key Features of the Agreement

The joint statement released by both governments confirmed that tariffs on Indian goods entering the US will be reduced from 50% to 18%. This comes after months of negotiations, following Washington's imposition of steep duties last year amid tensions over India's energy imports from Russia.

Under the interim framework, the US will lower tariffs on a wide range of Indian products including textiles, leather, footwear, plastics, chemicals, home décor, artisanal goods, and machinery. Washington has also indicated that duties on pharmaceuticals, gems, diamonds, and aircraft parts will be removed once the agreement is finalized.

India, in return, will reduce or eliminate tariffs on US industrial goods and agricultural products such as tree nuts, fruits, soybean oil, wine, and spirits. Sensitive farm items like rice, wheat, poultry, milk, and dairy products will remain protected. Commerce and Industry Minister Piyush Goyal stressed that the pact safeguards India's agricultural interests while opening up a $30 trillion global market for Indian exporters.

Energy and Technology Cooperation

The framework also outlines India's intent to purchase $500 billion worth of US energy products, aircraft, technology, and coking coal over the next five years. While speculation continues about India reducing Russian oil imports, the government has reiterated that energy security remains its top priority.

Both countries have agreed to expand cooperation in digital and technology trade, addressing barriers to e-commerce and boosting exchanges in advanced products such as GPUs and data centre equipment. India will review standards and licensing rules within six months to ease market access for US medical devices and ICT goods.