'Great News for India and USA': PM Narendra Modi's First Reaction on Joint Statement on India-US Trade Deal

Prime Minister Narendra Modi on Saturday hailed the India-US interim trade agreement as “great news for India and the USA”, welcoming the joint statement issued by New Delhi and Washington that lays out the framework for the deal. Reacting shortly after the announcement, PM Modi said the pact reflects the growing depth of the strategic partnership and will unlock fresh opportunities for Indian exporters, MSMEs, farmers and the technology sector. "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 our partnership. It strengthens

‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more. It will generate large-scale employment for women and youngsters," PM Modi posted on X. "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," he added.

The US and India on Saturday announced that they have reached a framework for an interim trade agreement, under which America will reduce tariffs on India to 18 per cent, according to a joint statement released by the White House and Commerce Ministry. Key terms of the agreement include that India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food 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. The US will apply a reciprocal tariff rate of 18 per cent on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products and certain machinery.The Joint Statement said the framework reaffirms the countries' commitment to the broader US-India Bilateral Trade Agreement negotiations launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025. The framework will include additional market access commitments and support more resilient supply chains."The Interim Agreement between the United States and India will represent a historic milestone in our countries' partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes," the statement said. Subject to the successful conclusion of the Interim Agreement, the US will remove the reciprocal tariff on a wide range of goods including generic pharmaceuticals, gems and diamonds, and aircraft parts, the statement said.