New Delhi. Prime Minister Narendra Modi welcomed the framework for an interim trade agreement between India and the United States, calling it a major and positive achievement for both countries. He said that this framework reflects the depth, trust, and vigor of the India-US strategic partnership and will provide new strength to the Make in India campaign.

Responding to Union Commerce and Industry Minister Piyush Goyal's post on Instagram regarding the India-US interim trade agreement, Prime Minister Narendra Modi thanked US President Donald Trump for his personal contribution to strengthening the relationship between the two countries. The Prime Minister said that this interim trade agreement will open up new opportunities for farmers, entrepreneurs, micro, small and medium enterprises, startup innovators and fishermen, leading to massive employment generation in the country, especially for women and youth.

The Prime Minister stated that this agreement will further deepen investment and technology partnerships between India and the United States and strengthen reliable and robust supply chains. He also stated that this will not only benefit the economies of both countries but will also accelerate global growth. Reiterating the vision of a developed India, the Prime Minister said that India is fully committed to forward-looking global partnerships that empower people and promote shared prosperity.

The Prime Minister described this as excellent news for both India and the United States. He said that this framework will give new impetus to innovation, investment, and technology cooperation between the two countries and further strengthen the global supply chain. He said that as India progresses towards a developed India, it will remain committed to building global partnerships that put people at the center and contribute to shared development globally.

Earlier, Union Commerce and Industry Minister Piyush Goyal described the interim trade agreement between the two countries as a historic step for India's economy, exports, and employment. He said that under the decisive leadership of Prime Minister Narendra Modi, India has established this important framework with the United States, which will open the doors to the vast $30 trillion US market for Indian exporters.

Piyush Goyal stated that this agreement will significantly benefit micro, small, and medium enterprises, farmers, and fishermen. The increased exports will create millions of new employment opportunities for women and youth. Under this framework, the US will reduce reciprocal tariffs on Indian goods to 18 percent, providing a significant boost to Indian exports in sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, handicraft products, and select machinery. This opportunity will ensure India's strong presence in the world's largest economy.

He added that tariffs will also be completely eliminated on several products, including generic medicines, gems and jewelry, diamonds, and aircraft components. This will strengthen Make in India and further strengthen India's export competitiveness. India has achieved favorable outcomes through negotiations on exemptions for aircraft components under Section 232, tariff rate quotas on auto parts, and generic medicines, ensuring substantial export benefits in these sectors.

He said the agreement fully protects farmers' interests and rural livelihoods, fully protecting other sensitive agricultural products, including corn, wheat, rice, soy, poultry, milk, cheese, fuel ethanol, tobacco, certain vegetables, meat, and dairy.

It is noteworthy that India and the United States issued a joint statement early today outlining the framework for an interim trade agreement. The statement stated that this initiative represents a historic step toward promoting reciprocal, balanced, and mutually beneficial trade between the two countries. The statement described it as a significant step toward elevating the India-US economic partnership to new heights and a significant milestone toward a comprehensive bilateral trade agreement.

According to a joint statement, this framework is a significant milestone in the India-US Bilateral Trade Agreement (BTA) negotiations launched by Prime Minister Narendra Modi and US President Donald Trump on February 13, 2025. India will eliminate or reduce tariffs on all US industrial products and several food and agricultural products, including red sorghum for animal feed, dried distillers' grains, dried fruits, fresh and processed fruits, soybean oil, wine and spirits, and many other products.