Modi Hails India-US Interim Trade Framework as Game-Changer as Tariff Cuts

PM Modi Celebrates Deepening India-US Trust

Modi said in a social media post that this framework is an embodiment of growing depth of trust and dynamism in India-US partnership. It can help to enhance ‘Make in India’ by providing opportunities for India’s industrious farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and others, he added. 

Massive Job Creation

PM Modi said it can create millions of jobs for women and youth on a massive scale. This will also deepen investment and technology partnerships in India, and it will be much more common if we establish this new framework on both. This framework and collaborative spirit will also serve to build trusted and resilient supply chains and spur global growth, he added.

Piyush Goyal Calls It Landmark

A closely involved Union Commerce and Industry Minister, Piyush Goyal, called the deal a landmark. It would create a $30 trillion market for Indian exporters, as well as MSMEs, farmers and fishermen benefited, he maintained.
The flood of exports is going to end up bringing lakhs of new jobs for women and youth in the country, he said.

India Opens Doors to US Products

The United States and India said they would implement this framework in a timely manner as they are progressing with the interim deal and negotiations on the broader bilateral trade deal.
India will reduce or end tariffs on all US industrial goods and on many US farm and food items such as dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, spirits and more.

US Drops Duties on These Products

Following completion of the Interim Agreement, the US would discontinue the reciprocal tariff on numerous Indian goods, including generic medicines, gems and diamonds and aircraft parts.
On its part, the US will also eliminate tariffs on some aircraft and its parts from India.

Trump-Modi Deal: From 50% to 18% Tariffs

The agreement followed earlier this week’s announcement by US President Donald Trump that Washington and New Delhi had struck a deal to reduce US tariffs on Indian goods to 18 per cent from 50 per cent, in exchange for India halting purchases of Russian oil and lowering trade barriers.