Modi on India-USA trade deal: India and the United States have finalized an interim trade agreement that will reduce US tariffs on Indian goods by 18 percent. Prime Minister Narendra Modi described it as “very good news” for both countries on Saturday. PM Modi wrote on the social media platform ‘X’, “We have agreed on a framework for an interim trade agreement between our two great nations. I thank President Trump for his personal commitment to strengthening the ties between our countries.”
India-USA tariff reduction: A new opportunity for ‘Make in India’
Great news for India and USA!
We have agreed on a framework for an Interim Trade Agreement between our two great nations. I thank President Trump for his personal commitment to robust ties between our countries.
This framework reflects the growing depth, trust and dynamism of… https://t.co/zs1ZLzamhd
— Narendra Modi (@narendramodi) February 7, 2026
Prime Minister Modi said that this agreement will open up new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, startup innovators, fishermen, and others, and will strengthen ‘Make in India’. It will also increase employment opportunities for women and youth. He added that this framework will further strengthen investment and technology partnerships and help build robust and reliable supply chains.
PM Modi’s statement on trade: Industry and trade to benefit greatly (Modi on India-USA trade deal)
Union Commerce and Industry Minister Piyush Goyal announced that the US will reduce reciprocal tariffs on Indian goods to 18 percent. This will provide a significant market boost for sectors such as textiles, apparel, leather and footwear, plastics, rubber products, organic chemicals, home decor, handicrafts, and machinery. Additionally, tariffs on generic medicines, gems, diamonds, and aircraft parts will be reduced to zero, further enhancing India’s export competitiveness.
USA-India economic partnership: Agriculture and sensitive sectors protected
Goyal stated that this agreement will fully protect sensitive agricultural and dairy products such as maize, wheat, rice, soy, poultry, milk, cheese, ethanol, tobacco, certain vegetables, and meat. This will safeguard the interests of farmers and rural livelihoods. The agreement reflects the deepening economic cooperation between India and the United States and their shared commitment to sustainable development in both countries.
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