'Strengthens supply chains against China, support Rupee stability': Amitabh Kant says tariff cut to 18% gives India edge in US market
On Saturday, India and the US officially announced a framework for an interim trade agreement, aimed at significantly boosting bilateral commerce through reciprocal tariff reductions.
- Feb 7, 2026,
- Updated Feb 7, 2026 12:54 PM IST
Amitabh Kant, former CEO of the Niti Aayog and ex-G20 Sherpa, said on Saturday that the interim trade deal framework between India and the US unlocks massive opportunities for Indian exports in sectors including textiles, pharma, gems, and footwear, etc.
On Saturday, India and the US officially announced a framework for an interim trade agreement, aimed at significantly boosting bilateral commerce through reciprocal tariff reductions. The deal, likely to be finalised by mid-March 2026, serves as a precursor to a comprehensive bilateral trade agreement (BTA).
Kant added that the interim trade pact framework gives India a competitive edge against the likes of Vietnam and Bangladesh, whilst protecting the agriculture and dairy sectors.
"India and the US interim trade deal slashes US tariffs on Indian goods to 18% from a severe 50%, unlocking massive opportunities for our exporters in textiles, pharma, gems, footwear, and more. India gains a competitive edge over rivals like Vietnam and Bangladesh while protecting our agriculture and dairy sectors, creating lakhs of new jobs (especially for women and youth), and powering digital infrastructure and Make-in-India initiatives," Kant wrote on X.
He also called the interim agreement a "strategic win", which bolsters supply chains against China and also supports Rupee stability.
"This is a strategic win that strengthens supply chains against China and supports Rupee stability. Massive credit to PM @narendramodi for his bold leadership and vision. My compliments to @PiyushGoyal for his drive and dynamism and to Commerce Secretary @RajeshAgrawal94 for his determination and hard work. Mutually beneficial bilateral relationships is a key step towards Viksit Bharat."
Highlights of India-US interim trade pact
As per a joint statement, the US has reduced duties on Indian goods from 50 per cent to 18 per cent. Moreover, US President Donald Trump has issued an executive order removing the 25 per cent additional duty imposed on India for purchasing Russian oil.
Tariffs will drop to zero for Indian exports, including generic pharmaceuticals, gems, diamonds, and aircraft parts. India has committed to eliminate or reduce duties on all US industrial goods and several agricultural products while maintaining protections for agriculture, dairy, fruits, vegetables, and spices.
New Delhi has pledged to purchase $500 billion in US energy, aircraft and technology products over the next 5 years. The pact also addresses non-tariff barriers, especially in medical devices and ICT goods. It seeks to expand cooperation in high-tech trade involving GPUs and data centres.
Amitabh Kant, former CEO of the Niti Aayog and ex-G20 Sherpa, said on Saturday that the interim trade deal framework between India and the US unlocks massive opportunities for Indian exports in sectors including textiles, pharma, gems, and footwear, etc.
On Saturday, India and the US officially announced a framework for an interim trade agreement, aimed at significantly boosting bilateral commerce through reciprocal tariff reductions. The deal, likely to be finalised by mid-March 2026, serves as a precursor to a comprehensive bilateral trade agreement (BTA).
Kant added that the interim trade pact framework gives India a competitive edge against the likes of Vietnam and Bangladesh, whilst protecting the agriculture and dairy sectors.
"India and the US interim trade deal slashes US tariffs on Indian goods to 18% from a severe 50%, unlocking massive opportunities for our exporters in textiles, pharma, gems, footwear, and more. India gains a competitive edge over rivals like Vietnam and Bangladesh while protecting our agriculture and dairy sectors, creating lakhs of new jobs (especially for women and youth), and powering digital infrastructure and Make-in-India initiatives," Kant wrote on X.
He also called the interim agreement a "strategic win", which bolsters supply chains against China and also supports Rupee stability.
"This is a strategic win that strengthens supply chains against China and supports Rupee stability. Massive credit to PM @narendramodi for his bold leadership and vision. My compliments to @PiyushGoyal for his drive and dynamism and to Commerce Secretary @RajeshAgrawal94 for his determination and hard work. Mutually beneficial bilateral relationships is a key step towards Viksit Bharat."
Highlights of India-US interim trade pact
As per a joint statement, the US has reduced duties on Indian goods from 50 per cent to 18 per cent. Moreover, US President Donald Trump has issued an executive order removing the 25 per cent additional duty imposed on India for purchasing Russian oil.
Tariffs will drop to zero for Indian exports, including generic pharmaceuticals, gems, diamonds, and aircraft parts. India has committed to eliminate or reduce duties on all US industrial goods and several agricultural products while maintaining protections for agriculture, dairy, fruits, vegetables, and spices.
New Delhi has pledged to purchase $500 billion in US energy, aircraft and technology products over the next 5 years. The pact also addresses non-tariff barriers, especially in medical devices and ICT goods. It seeks to expand cooperation in high-tech trade involving GPUs and data centres.