Strengthens ‘Make in India’: PM Modi hails India-US trade deal; thanks Trump | India News
New Delhi: Prime Minister Narendra Modi on Saturday welcomed the Indo-US trade agreement, calling it a major step towards strengthening economic ties, boosting domestic production and creating jobs.In a post by X, Prime Minister Modi said: “Great news for India and the United States! We have agreed on a framework for an interim trade agreement between our two great countries. I thank President Trump for his personal commitment to a strong relationship between our countries. This framework reflects the growing depth, trust and dynamism of our partnership. It strengthens’Make in IndiaBy opening up new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, startup innovators, fishermen and more. It will create massive employment for women and youth. India and the US share a commitment to promoting innovation and this framework will deepen the investment and technology partnership between us. This framework will strengthen resilient and reliable supply chains and contribute to global growth. As India moves towards building a prosperous India, we remain committed to building global partners.”
India and the US had earlier issued a joint statement announcing the framework for an interim trade agreement, under which tariffs on Indian goods entering the US would be reduced from 50% to 18%. “The United States and India are pleased to announce that they have reached a framework for an interim agreement on mutually and mutually beneficial trade,” the statement said.The announcement follows months of negotiations after trade talks stalled after Washington imposed 50% tariffs on Indian imports. The 25% tariff was introduced in August, after the US alleged that India was supporting Russia’s war effort against Ukraine by buying oil.The framework reiterates both sides’ commitment to negotiate a larger US-India bilateral trade deal launched in February 2025 by Modi and US President Donald Trump amid lingering trade tensions linked to India’s energy imports from Russia.Under the interim agreement, the US will reduce tariffs by 18% on a wide range of Indian goods, including textiles and apparel, leather and footwear, plastic and rubber products, biochemicals, home furnishings, industrial products and selected machinery. Subject to the successful conclusion of the deal, Washington also said it would withdraw tariffs on additional Indian exports such as generic pharmaceuticals, gems and diamonds, and aircraft parts.India, in turn, would eliminate or reduce tariffs on all US industrial products and a broad basket of food and agricultural products, including dry distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits.Union Commerce and Industry Minister Piyush Goyal said the agreement protects India’s agriculture sector, with sensitive farms and dairy products fully protected. These include corn, wheat, rice, soy, chicken, milk, cheese, ethanol for fuel, tobacco, some vegetables and meat.The framework also outlines India’s intention to buy $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years, which is expected to significantly expand bilateral trade.New Delhi has not confirmed any such commitment to demands that India stop importing Russian oil. The government has reiterated that energy security is its top priority. “Diversifying our energy sources in line with commodity market conditions and developing international mobility is at the core of our strategy to ensure this,” said MEA spokesperson Randhir Jaiswal.The agreement provides for preferential market access for both countries in key sectors. The US will withdraw tariffs on some Indian aircraft and aircraft parts imposed on national security grounds, while India will receive preferential tariff rate quotas for auto parts and negotiated results for generic pharmaceuticals and components.Goyal said the deal opens up a $30 trillion market to Indian exporters, especially MSMEs, farmers and fishermen, and is expected to create millions of jobs for women and youth.The framework also includes measures to increase digital and technology trade, with both sides committing to address barriers to digital trade, increase trade in technology products including GPUs and data center equipment, and expand joint technology cooperation.Both countries agreed to work on removing non-tariff barriers affecting bilateral trade. India will address issues related to US medical devices, information and communication technology products and food and agricultural products, eliminate restrictive import licensing and review standards within six months to ease market access.Officials said the framework paves the way for the finalization of interim agreements and progress in negotiations on a comprehensive bilateral trade deal with scope for further tariff reductions.
