India and the United States have established a framework for an interim trade agreement designed to reduce trade barriers and bolster economic cooperation. Union Minister Hardeep Singh Puri has hailed the framework as a move that will strengthen the ‘Make in India’ initiative and create opportunities for Indian farmers, entrepreneurs, MSMEs, and startups. The agreement is expected to generate large-scale direct and indirect employment opportunities, particularly for the youth.

The interim trade agreement is anchored in the shared commitment of both nations, under the leadership of Prime Minister Narendra Modi and the U.S. President, towards a prosperous future. The framework reflects a commitment to promoting innovation and will deepen investment and technology partnerships between India and the USA.

External Affairs Minister S Jaishankar stated that the framework for an Interim Agreement will realize a mutually beneficial India-U.S. trade partnership, ensuring greater market access and opportunities for Indian exporters. He added that new avenues have opened up that will further promote ‘Make in India’.

As per the agreement, the U.S. will reduce tariffs on Indian goods to 18%. India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of American food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine, and spirits. India also intends to purchase $500 billion worth of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years. The U.S. will also remove the additional 25% duty on Indian goods.

Sergio Gor, the U.S. Ambassador to India, credited President Trump and Prime Minister Modi for their leadership and vision in achieving this agreement.

Industry chambers FICCI and PHDCCI have welcomed the agreement, asserting that it will pave the way for expanding market access for exporters in both countries and provide a stable and comprehensive trade framework. PHDCCI President Rajeev Juneja noted that this interim tariff agreement marks a significant development in U.S.-India trade relations.

Subject to the successful conclusion of the interim agreement, tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts, thereby further enhancing India's export competitiveness.

Uttar Pradesh Chief Minister Yogi Adityanath lauded the framework, stating that it delivers a decisive boost to Make in India and will expand global market access for Indian products.

Commerce Minister Piyush Goyal is expected to address a press conference to discuss the recently issued India-U.S. Joint Statement on the interim trade agreement.