India-US Trade Deal: After India and the US announced that they have reached an interim framework for a trade agreement, Prime Minister Narendra Modi described the development as “great news for India and the USA.” India and the United States of America, early on Saturday, announced to have reached a framework for the bilateral trade agreement, cutting the reciprocal tariff to 18 per cent from 25 per cent.

Expressing satisfaction over the development, PM Modi said that the deal will strengthen the ‘Make in India’ programme and open opportunities for ‘farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more’. 

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"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 wrote.

Describing the two countries as ‘great nations, ’ PM Modi also expressed his gratitude to POTUS for the successful agreement. "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," the Prime Minister added. 

India, US Announced Trade Deal On Monday

President Trump signed an executive order on Saturday to take back the punitive 25 per cent duty on Indian products exported to America. Both countries reached a breakthrough on Monday, when Trump announced the reduction in tariffs from 25 per cent to 18 per cent through a post on Social Truth after holding a telephonic conversation with PM Modi. 

What Is There For India In Trade Deal With US: Key Points

  • The trade framework, which was announced early on Saturday, says that if either country changes its tariff levels in the future, the other side will have the right to change its commitments accordingly.
  • India will get a preferential tariff quota for exporting automotive parts to the United States.
  • The US will apply a reciprocal tariff of 18 per cent on textiles and apparel, leather and footwear, plastics, organic chemicals, home décor, rubber, artisanal products and certain categories of machinery.
  • The US will remove the reciprocal tariff on gems, diamond and generic pharmaceuticals once the interim trade agreement is concluded.
  • Tariffs on certain Indian aircraft and aircraft parts, imposed on national security grounds under separate orders covering steel, copper and aluminium, will be lifted.

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