Prime Minister Narendra Modi welcomed the announcement of the Interim Trade Agreement between India and the United States, calling it ‘great news’ for both nations.
He highlighted that the framework reflects the ‘growing depth, trust and dynamism’ of bilateral relations and strengthens the ‘Make in India’ initiative by opening new opportunities for farmers, entrepreneurs, MSMEs, start-ups, fishermen, women, and youth.
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… https://t.co/zs1ZLzamhd
— Narendra Modi (@narendramodi) February 7, 2026
The agreement reduces US tariffs on Indian goods to 18 per cent, covering sectors such as textiles, apparel, leather, plastic, rubber, organic chemicals, home décor, artisanal products, and machinery.
Certain products, including generic pharmaceuticals, gems and diamonds, and aircraft parts, will enjoy zero tariffs, enhancing India’s global export competitiveness.
Commerce and Industry Minister Piyush Goyal emphasised that the framework protects sensitive agricultural and dairy products, including maize, wheat, rice, soya, milk, cheese, poultry, and ethanol, ensuring rural livelihoods remain safeguarded.
India will also receive preferential treatment on automotive parts, aircraft components, and negotiated outcomes on generic pharmaceuticals.
PM Modi noted that the agreement deepens innovation, investment, and technology cooperation, while promoting resilient and trusted supply chains.
The framework is set to boost employment, advance India’s Viksit Bharat vision, and strengthen US–India economic ties. It opens markets for Indian exporters, including MSMEs, farmers, start-ups, women, and youth.
By cutting tariffs and removing barriers, it enhances India’s global trade competitiveness and bilateral cooperation in key sectors, reflecting both nations’ commitment to growth and prosperity.
Officials noted that the agreement also sets the stage for further discussions on a comprehensive bilateral trade pact, ensuring long-term benefits for both countries’ economies and people.
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