Historic economic partnership strengthens global supply chains while protecting Indian farmers
India and the United States have officially pulled back the curtain on a transformative interim trade agreement, signaling a new era of economic partnership. This landmark framework, announced on Saturday, focuses on slashing import duties and building a more resilient global supply chain. Union Commerce and Industry Minister Piyush Goyal hailed the move, noting that it grants Indian businesses—especially small-scale industries, farmers, and fishermen—unprecedented access to a massive $30 trillion market.
The India-US Interim Trade Agreement is not just about numbers; it is a massive engine for job creation. By boosting exports in key sectors, the deal is expected to create lakhs of new roles for women and young professionals across the country. For a state like Odisha, this could mean better opportunities for seafood exporters and handloom artisans to reach American shelves with fewer financial hurdles.
Under the new terms, India will lower tariffs on American industrial products and various agricultural goods, such as fruits and nuts. In a significant win for India, the United States has agreed to cap reciprocal tariffs at 18% for most exports. Furthermore, once the deal is fully active, the US will completely remove duties on critical Indian exports, including generic medicines, gems, jewelry, and aircraft components.
Importantly, the Indian government has ensured that domestic interests remain protected. Minister Goyal emphasized that sensitive sectors—such as dairy, wheat, rice, and poultry—are excluded from the tariff cuts to safeguard the livelihoods of rural farmers.
Looking ahead, India plans to purchase $500 billion worth of American energy, technology, and aircraft parts over the next five years. This strategic exchange is designed to balance trade while securing essential resources for India’s growing economy. From digital trade cooperation to easing rules for auto parts, this interim pact sets the stage for a much broader bilateral trade agreement in the near future.
