India and the United States have taken a major step forward in economic cooperation by finalising a framework for an interim trade agreement that significantly lowers American tariffs on Indian products. Prime Minister Narendra Modi on Saturday welcomed the development, describing it as a positive milestone that strengthens ties between the two countries and opens new economic opportunities for India.

Under the framework, the United States will reduce tariffs on Indian goods to an average of 18 per cent, with complete duty removal on several high-value export categories. The move is expected to give Indian exporters wider access to the world’s largest consumer market and enhance India’s global trade footprint.

Prime Minister Modi said the agreement reflects the increasing trust and maturity in India–US relations. He noted that the trade framework aligns closely with India’s domestic manufacturing push and will directly benefit farmers, small businesses, start-ups, fishermen, and entrepreneurs across sectors. According to him, the expansion of exports under the agreement will also lead to large-scale job creation, particularly for women and young professionals.

The Prime Minister further underlined that innovation and technology remain at the heart of India–US cooperation. He said the new framework will accelerate investment flows, promote collaboration in advanced technologies, and strengthen resilient supply chains, contributing not just to bilateral growth but also to global economic stability.

Commerce and Industry Minister Piyush Goyal also welcomed the agreement, stating that it reinforces the shared vision of sustainable growth and long-term economic partnership between the two nations. He said the interim framework positions Indian businesses to tap into a nearly $30 trillion US market, creating fresh demand for Indian products and services.

As part of the deal, key sectors such as textiles, garments, leather goods, footwear, plastics, rubber products, organic chemicals, home décor items, handicrafts, and selected machinery will benefit from lower tariffs. In addition, duties will be eliminated entirely on products where India has strong global competitiveness, including generic medicines, gems and diamonds, and aircraft components.

India has also secured important exemptions and concessions under US national security trade provisions. These include relief under Section 232 for aircraft parts, a tariff rate quota for auto components, and negotiated outcomes that support exports of generic pharmaceuticals. The US will also roll back duties earlier imposed on certain aircraft-related items linked to metal import restrictions.

At the same time, the agreement safeguards India’s core agricultural interests. Sensitive sectors such as dairy, grains, poultry, meat, ethanol, and select crops have been fully protected, ensuring that farmers’ livelihoods and rural stability remain unaffected.