Mumbai (Maharashtra) [India], February 7 : Union Minister Ramdas Athawale on Saturday welcomed the India-US interim trade agreement, saying the framework would strengthen bilateral trade ties and benefit key sectors, including agriculture, while dismissing concerns being raised about its impact on farmers.
Speaking to ANI, Athawale said the agreement reflected the long-standing relationship between India and the United States.
"This agreement will boost trade. In between, our relations with the US were not good, but for many years our relations with America have been good," he said.
The minister added that this deal will also benefit the farmers." Whatever people are thinking about the farmers here, it's not like that. This deal will be used to empower the farmers here," he added.
Earlier today, Union Commerce Minister Piyush Goyal hailed the framework announced for the India-US trade agreement and said it would bring significant benefits to farmers and Indian MSMEs.
He said, "Agricultural products from Indian farmers will be exported to the United States at zero duty. At the same time, no tariff concessions have been granted to US agricultural products entering the Indian market. The agreement also makes it clear that genetically modified (GM) food will not be allowed into India."
"I can state categorically and without any hesitation that India's farmers, MSMEs, artisans, and craftsmen will not suffer any loss. On the contrary, India will benefit from greater access to the US market," the minister said.
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.