Prime Minister Narendra Modi on Saturday welcomed the finalisation of the framework for an interim trade agreement between India and the United States, calling it “great news for India and the USA” and thanking US President Donald Trump for his personal commitment to strengthening bilateral ties.
Reacting to the announcement, the Prime Minister said the framework reflects the growing depth, trust, and dynamism of the India–US partnership and will significantly strengthen the Make in India initiative by opening new economic opportunities across key sectors.
Boost for Make in India and Employment
In a post on X, PM Modi said the interim trade framework will benefit farmers, entrepreneurs, MSMEs, startup innovators, fishermen, women, and young professionals, while generating large-scale employment across the country.
“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,” the Prime Minister said.
Strengthening Supply Chains and Global Growth
The announcement followed a joint statement issued earlier in the day by India and the United States, formally unveiling the interim framework for the long-awaited trade agreement.
Welcoming the development, PM Modi said the framework would help strengthen resilient and trusted supply chains and contribute to global economic growth. He added that as India advances towards the goal of a Viksit Bharat, the country remains committed to building future-oriented global partnerships that empower people and promote shared prosperity.
Pathway to a Comprehensive Trade Agreement
The interim framework marks the culmination of months of negotiations aimed at easing trade frictions and expanding market access for both countries. It outlines reciprocal tariff reductions and sector-specific market access commitments and is intended to act as a bridge toward a comprehensive Bilateral Trade Agreement (BTA).
US Removes Penalty Tariffs on India
Alongside the announcement, US President Donald Trump signed an executive order removing the 25% penalty tariff imposed on Indian goods. The US administration linked the rollback to India’s commitments on energy cooperation and strategic alignment, including increased purchases of US energy products.
Addressing claims related to India’s oil imports, Ministry of External Affairs spokesperson Randhir Jaiswal reiterated that ensuring the energy security of 1.4 billion Indians remains the government’s highest priority.
He said India’s energy strategy is based on diversification, adding that all decisions are guided by market conditions and evolving international dynamics to safeguard national interests.
