New Delhi, Feb 7 (UNI) India and the United States have agreed on a framework for an interim trade agreement that promises sharp tariff reductions, wider market access and deeper supply chain cooperation, marking a major breakthrough in efforts to conclude a comprehensive India–US Bilateral Trade Agreement
Prime Minister Narendra Modi welcomed the development, calling it “great news for India and USA” and underlining its potential to boost jobs, innovation and economic growth in both countries.
“We have agreed on a framework for an Interim Trade Agreement between our two great nations,” PM Modi said in a post on X, thanking US President Donald Trump “for his personal commitment to robust ties between our countries.”
The framework, announced by the White House, signals renewed momentum in trade talks that were formally launched by the two leaders in February 2025. It commits India to eliminating or reducing tariffs on all US industrial goods and a wide range of American agricultural and food products, while the United States would roll back reciprocal tariffs on several Indian exports once the interim agreement is finalized.
Describing the agreement as a reflection of the “growing depth, trust and dynamism” of the India–US partnership, PM Modi said it would directly strengthen the government’s flagship Make in India initiative.
“This framework strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more,” he said. “It will generate large-scale employment for women and youngsters.”
The interim pact is designed to deliver early gains to both sides while paving the way for a broader, legally binding BTA covering goods, services, digital trade and investment.
The Prime Minister also highlighted the agreement’s emphasis on technology and innovation, areas that have become central to the strategic partnership between New Delhi and Washington.
“India and the United States share a commitment to promoting innovation and this framework will further deepen investment and technology partnerships between us,” PM Modi said, adding that it would help build “resilient and trusted supply chains” and contribute to global growth.
US officials described the framework as a balance between reciprocal trade and long-term economic security, particularly in the context of global supply chain disruptions and non-market practices by third countries.
Trade ties between India and the US have expanded steadily over the past decade, with bilateral trade in goods and services crossing record levels. However, differences over tariffs, market access and non-tariff barriers had recently slowed progress toward a full free trade agreement.
The interim framework is seen as a pragmatic step to address long-standing issues while maintaining political momentum. Analysts say it could significantly benefit sectors such as manufacturing, agriculture, technology and energy, and help integrate Indian firms more deeply into global value chains.
As India moves toward its goal of becoming a Viksit Bharat, PM Modi said New Delhi remains committed to building future-oriented global partnerships.
“We remain committed to building global partnerships that empower our people and contribute to shared prosperity,” he said.
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