In a major step to boost economic relations, India and the United States have announced a framework for an interim trade agreement. Both countries see the move as a way to deepen cooperation and strengthen supply chains, even as talks continue on a full Bilateral Trade Agreement (BTA). Union Commerce and Industry Minister Piyush Goyal shared the update on social media platform X, saying the progress was made under the leadership of Prime Minister Narendra Modi.

Both governments called the interim framework a historic step and said it shows their shared commitment to finalising a full BTA. Officials said a formal interim deal could be signed soon, while talks will continue on a wider agreement that could be completed by March.

$30 trillion market opportunity for Indian exporters

“Under the decisive leadership of PM @NarendraModi ji, India has reached a framework for an Interim Agreement with the US. This will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen. The increase in exports will create lakhs of new job opportunities for our women and youth,” Goyal posted.

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US to cut reciprocal tariffs to 18%

Adding to it he mentioned that, “As part of this framework, the US will slash reciprocal tariffs on Indian goods to 18%, providing a huge market opportunity in key sectors such as textiles & apparel, leather & footwear, plastic & rubber products, organic chemicals, home décor, artisanal products, and select machinery in the world’s largest economy”. 

In his another post shared on X, Goyal said, “The #IndiaUSTradeDeal will not only provide greater access to the US market for Indian products but also support our labour intensive sectors. Additionally, it will give a big boost to our digital infrastructure”.

Sensitive sectors to remain fully protected

The framework reaffirms protections for India’s sensitive sectors: agriculture and dairy items such as wheat, rice, maize, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables, and meat remain fully shielded to safeguard farmers’ interests and rural livelihoods.

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Goyal shares one more post on X, in which he wrote, “Future-ready partnership. From addressing non-tariff barriers to aligning standards and advancing joint technology cooperation, the India US Trade Deal reinforces a shared commitment to facilitating trade, expanding market opportunities, and strengthening bilateral economic engagement”.

Commerce Minister Piyush Goyal highlighted the employment benefits, saying higher exports would create lakhs of new jobs, especially for women and young people. He added that the move would support sustainable growth and strengthen India’s vision of becoming a developed nation, or Viksit Bharat.