India, US issue joint statement on interim trade deal

India and the US on Saturday issued a joint statement announcing a framework for an interim trade agreement aimed at expanding bilateral economic cooperation and boosting Indian exports across key sectors.

Commerce and Industry Minister Piyush Goyal said the framework, reached under the leadership of Prime Minister Narendra Modi, would open access to the $30 trillion US market for Indian exporters, particularly benefiting micro, small and medium enterprises (MSMEs), farmers and fishermen.

He said the anticipated rise in exports would create lakhs of new employment opportunities, especially for women and youth.

According to Goyal, the framework provides for a reduction in reciprocal tariffs by the US on Indian goods to 18 per cent, creating new opportunities in sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products and select machinery.

Tariffs will also be reduced to zero on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts, a move expected to enhance India’s export competitiveness and support the Make in India initiative.

The agreement further envisages exemptions under Section 232 for aircraft parts, tariff-rate quotas on auto parts, and negotiated outcomes for generic pharmaceuticals, which are expected to result in tangible export gains.

At the same time, the framework safeguards India’s sensitive agricultural and dairy sectors. Products such as maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat will remain fully protected to safeguard farmers’ interests and sustain rural livelihoods.

Goyal said the agreement would help India and the US remain focused on deepening economic cooperation, reflecting a shared commitment to sustainable growth for people and businesses in both countries.