Prime Minister Narendra Modi on Saturday welcomed the finalization of the framework of an interim trade agreement between India and the United States, describing it as “great news for India and the United States” and thanked US President Donald Trump for his “personal commitment to a strong relationship” between the two countries.
Prime Minister Narendra Modi thanks Donald Trump after India-US FTA announcement (Reuters)In a statement reacting to the development, Modi said the framework reflects the “increasing depth, trust and dynamism” of the Indo-US partnership and will strengthen the Make in India initiative by opening up new opportunities for farmers, entrepreneurs, MSMEs, startup innovators and fishermen. Follow up Live Updates on India-US Trade Agreement
“This framework reflects the growing depth, trust and dynamism of our partnership. It strengthens ‘Make in India’ by opening up new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, startup innovators, fishermen and more. It will create large-scale employment for women and youth,” added the Prime Minister at X.
The announcement follows a joint statement issued by India and the US the previous day, in which both sides formally unveiled Interim structure for the long-awaited trade deal announced earlier this month.
Welcoming the framework, Prime Minister Narendra Modi said it will strengthen resilient and reliable supply chains and contribute to global growth, adding, “As India moves towards building a prosperous India, we are committed to building global partnerships that are future-oriented, empowering our people and contributing to shared prosperity.”
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The Interim Trade Framework marks the culmination of months of negotiations between India and the US aimed at reducing trade frictions and expanding market access for both sides.
The framework announced on Saturday outlines mutual tariff reductions and sector-specific market access commitments and is intended to act as a bridge towards a comprehensive bilateral trade agreement (BTA).
Trump Removes Penalty TariffsAlongside the framework, US President Donald Trump signed an executive order to remove the 25% penalty tariff imposed on India. The order ties the tariff rollback to what the US administration has described as India’s commitment to energy and strategic alignment, repeating Trump’s claim that India has committed to “directly or indirectly” end Russian oil imports and increase purchases of US energy products.
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Earlier, when external affairs ministry spokesperson Randhir Jaiswal was asked about Trump’s claims on Russian oil imports, he insisted that ensuring energy security for 1.4 billion Indians is the government’s “top priority”.
He said India’s vision is focused on diversification, adding, “Diversifying energy sources in line with actual market conditions and evolving international dynamics is at the core of our strategy to ensure this. All India’s decisions are and will be taken with this in mind.”
