New Delhi, Feb 7 (NationPress) In a significant move, the United States and India have finalized an interim trade agreement that lowered US tariffs on Indian products to 18 percent. Prime Minister Narendra Modi expressed his enthusiasm about this development on Saturday, labeling it as 'great news' for both countries.

On the social media platform X, PM Modi stated, “Great news for India and USA! We have reached a consensus on a framework for an Interim Trade Agreement between our two great nations. I extend my gratitude to President Trump for his personal dedication to strengthening ties between our nations.”

He emphasized that the framework embodies the growing depth, trust, and dynamism of the India-US partnership and aims to bolster the 'Make in India' initiative.

“This framework signifies the evolving depth, trust, and dynamism of our partnership. It enhances 'Make in India' by unlocking new avenues for India's diligent farmers, entrepreneurs, MSMEs, and startup innovators, thus generating numerous employment opportunities for women and youth,” PM Modi articulated.

Furthermore, PM Modi mentioned that both nations are firmly committed to fostering innovation, and this agreement will enhance investment and technology collaborations between India and the US.

“India and the United States share a commitment to promoting innovation, and this framework will further deepen our investment and technology alliances. It will also bolster resilient and trusted supply chains and contribute to global growth. As India progresses towards 'Viksit Bharat', we are dedicated to forging global partnerships that empower our citizens and promote shared prosperity,” PM Modi added.

Earlier, Commerce and Industry Minister Piyush Goyal stated that the trade agreement would ensure that India and the US remain focused on collaborating to deepen economic cooperation, reflecting a shared commitment to sustainable growth for their citizens and businesses.

India has successfully established a framework for an Interim Agreement with the US.

“This framework will unveil a $30 trillion market for Indian exporters, particularly benefiting MSMEs, farmers, and fishermen. The surge in exports will lead to lakhs of new job opportunities for our women and youth,” the minister noted.

Under this framework, the US will reduce reciprocal tariffs on Indian goods to 18 percent, presenting substantial market opportunities in vital sectors such as textiles, leather, rubber products, and more within the world’s largest economy.

“Additionally, tariffs will be eliminated on a broad spectrum of products, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thus enhancing India’s export competitiveness and supporting 'Make in India',” Goyal stated.

India will also obtain exemptions under Section 232 concerning aircraft parts, tariff rate quota on auto parts, and negotiated outcomes on generic pharmaceuticals, leading to significant export benefits in these sectors.

“Simultaneously, the agreement demonstrates India’s dedication to protecting farmers’ interests and sustaining rural livelihoods by completely safeguarding sensitive agricultural and dairy products, including maize, wheat, rice, soya, and more,” Goyal clarified.

“Towards realizing 'Viksit Bharat' under PM Modi's leadership,” he added.

The framework also paves the way for tariff elimination on a broad array of Indian goods, pending the successful conclusion of the Interim Agreement. This includes sectors like generic pharmaceuticals, gems and diamonds, and aircraft parts, where India holds a robust global market share and US demand is substantial.

Washington will also eliminate tariffs on specific Indian aircraft and aircraft parts, which were previously imposed under national security measures linked to aluminum, steel, and copper imports.

India will be granted a preferential tariff rate quota for automotive parts, which are subject to US national security tariffs on automobiles and auto components.