'Reflects growing depth, trust, dynamism': PM Modi on India-US interim trade pact, thanks Donald Trump

Prime Minister Narendra Modi on Saturday welcomed the India-US interim trade deal and thanked US President Donald Trump for his personal commitment to strong ties between the two countries. He added that the framework "reflects the growing depth, trust and dynamism of our partnership". 

PM Modi further noted that the India-US interim trade deal framework strengthens the government's flagship 'Make in India' as it exposes farmers, entrepreneurs, MSMEs, startup innovators, fishermen and others to new opportunities. The trade deal would also create large-scale jobs for women and youth, he added. 

"India and the United States share a commitment to promoting innovation, and this framework will further deepen investment and technology partnerships between us. This framework will also strengthen resilient and trusted supply chains and contribute to global growth. As India moves forward towards building a Viksit Bharat, we remain committed to building global partnerships that are future-oriented, empower our people and contribute to shared prosperity," the Prime Minister wrote on X. 

Highlights of the India-US interim trade deal

As per the joint statement issued by both countries, US will slash reciprocal tariffs on India from 50 per cent to 18 per cent. The deal would open a market worth $30 trillion for Indian exporters, especially MSMEs, farmers and fishermen. 

The framework will also provide a huge market opportunity for key sectors, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal products and select machinery.

Tariffs would go down to zero on a range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts. 

Furthermore, New Delhi will get exemptions under Section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals.

India has completely protected sensitive agricultural and dairy products, including wheat, rice, maize, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat. 

India has also agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US goods and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products. 

Both countries committed to provide each other with preferential market access in sectors of respective interest on a sustained basis.