PM Modi hails India-US trade deal, thanks Trump: 'Framework reflects growing trust and dynamism'

PM Modi on Saturday hailed the India-US trade deal.

The United States and India on Friday unveiled a framework for an Interim Trade Agreement focused on reciprocal and mutually beneficial commerce, marking a notable advance in bilateral economic relations.

Hailing the interim trade agreement, Prime Minister Narendra Modi said, "Great news for India and USA! We have agreed on a framework for an Interim Trade Agreement between our two great nations. I thank President Trump for his personal commitment to robust ties between our countries."

"This framework reflects the growing depth, trust and dynamism of our partnership. It strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more. It will generate large-scale employment for women and youngsters," he added.

Officials described the proposed Interim Agreement as a landmark step designed to deliver measurable gains in market access, strengthen supply chains, and deepen cooperation on economic security between the two strategic partners.

India-US Interim Trade Agreement

The framework for an interim trade agreement, signals renewed momentum toward a broader bilateral trade pact after months of negotiations and recent tariff tensions. Under the new agreement, Donald Trump's tariffs on New Delhi will be reduced to 18 per cent.

In a joint statement, the two countries said they would “promptly implement this framework” and work toward finalising the interim agreement, with the goal of concluding a mutually beneficial Bilateral Trade Agreement (BTA). The framework, they said, reaffirms their commitment to deepening economic and trade ties.

Under the agreement, India will remove or reduce tariffs on all US industrial goods and a broad basket of agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits. In return, the United States will lower its reciprocal tariff rate to 18 per cent on Indian exports and eliminate tariffs on select products such as generic pharmaceuticals, gems and diamonds, and aircraft parts, subject to the finalisation of the pact.