New Delhi [India], February 7 : Union Home Minister Amit Shah on Saturday hailed the interim trade agreement between the US and India, characterising it as a "boost to India's roaring growth engine".
Shah made a post on his official 'X'handle, stating that the agreement opens opportunities for Indian farmers, entrepreneurs, MSMEs, among others.
"The Interim Trade Agreement entered into by India and the US gives another boost to India's roaring growth engine. Translating PM Shri @narendramodi Ji's vision of a Viksit Bharat into an inevitable reality, the agreement makes way for a boom for Make in India, hardworking farmers, entrepreneurs, MSMEs, startup innovators, and fishermen while churning employment for youth and women. Heartiest gratitude to Modi Ji for the landmark deal, and congratulations to every citizen of India.", the post read.
https://x.com/AmitShah/status/2020136574151979255?s=20
The United States and India announced a framework for an Interim Agreement on reciprocal, mutually beneficial trade, reaffirming their commitment to a broader Bilateral Trade Agreement (BTA) launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.
As part of the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US agricultural and food products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
On the other hand, the United States will impose a reciprocal tariff of 18 per cent on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and certain machinery. Subject to the successful conclusion of the Interim Agreement, the US has said it will later remove reciprocal tariffs on select items, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
The United States will also remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats, the joint statement said.
According to the statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
India also intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.