India and the US have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.
While the US will reduce tariffs on Indian goods to 18 per cent from the present 50 per cent, India will eliminate or cut down import duties on all US industrial goods and a wide range of American food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.
Rajeev Juneja, President, PHDCCI, said that the Governments of India and the United States have finally signed an interim tariff agreement aimed at reducing trade barriers and strengthening bilateral economic cooperation.
“The framework was agreed upon in ongoing negotiations to expand two-way trade and to lay the groundwork for a comprehensive Bilateral Trade Agreement”, Juneja added.
Furthermore, here is how the key industry bodies and industrialists have reacted to the India-US trade pact-
Pharma body welcomes pact
The pharmaceutical body, the Indian Pharmaceutical Alliance (IPA), welcomed the interim agreement between India and the United States.
IPA stated that strengthening the India-U.S. medicines partnership is important, as medicine security is a part of national security. Generics are exempt from tariffs.
“As noted in the Joint Statement, overall pharmaceuticals (including generics) are subject to ongoing U.S. Section 232 investigation. This is consistent with the approach across FTAs.”, IPA stated.
FICCI says a pivotal step forward
FICCI President Anant Goenka said that the India–US Trade Deal marks a pivotal step forward in advancing economic synergy between two of the world’s largest democracies.
“This strategic partnership is designed to lower tariffs, ease regulatory bottlenecks, and unlock new opportunities across sectors. As India strengthens its position as a global manufacturing hub, this agreement offers a timely boost to competitiveness, technology access, and supply chain resilience. It’s a moment to accelerate value creation—for India, with India, and from India—at a truly global scale.” Goenka added.
Strong confidence signal for market: Hinduja Chairman
Ashok Hinduja, Chairman, Hinduja Group of Companies (India), said that the conclusion of the India-US trade agreement marks a significant inflexion point for global businesses at a time when prolonged uncertainty has weighed on international trade and investment decisions.
“By providing greater predictability and a stable framework for cross-border commerce, the agreement sends a strong signal of confidence to global markets,” Hinduja added.
Puts India in the pole position in the race to China +1: Kotak AMC
Nitin Jain, CEO and Director, Kotak Mahindra Asset Management Singapore, said that the much-awaited India-US tariff deal removes the key overhang on the Indian economy, markets and currency while taking into account sufficient measures to safeguard local interests.
“India effective tariff at 18% is almost half the tariffs on Chinese goods and lower than other asian peers. Coming quickly on the back of the India – EU FTA and with 20 plus other trade agreements with large economies/ trading blocks, this puts India in the pole position in the race to China +1 opportunity in global supply chains.” Jain said.