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India-US Trade Deal: Zero-Tariff Access for Gems, Pharma to Boost Exports

India and the United States have agreed on a Framework for an Interim Trade Agreement, a move hailed as a landmark decision. The deal, championed by Prime Minister Narendra Modi, secures zero-tariff access for Indian exports like gems, pharmaceuticals, and aircraft components. This agreement is expected to unlock new export avenues, strengthen labor-intensive sectors, and generate large-scale employment. The framework also reaffirms both nations' commitment to broader Bilateral Trade Agreement negotiations aimed at resilient supply chains.

Key Points: India-US Interim Trade Deal: Zero Tariffs, Jobs, Economic Boost

  • Zero-tariff access for high-value goods
  • Boost for MSMEs and job creation
  • Strengthens India-US economic ties
  • Part of broader Bilateral Trade Agreement
2 min read

"Framework for an Interim Trade Agreement will expand India's global economic footprint," BJP's N. Ramchander Rao

India & US agree on a trade framework. Zero-tariff access for gems, pharma, aircraft parts to boost exports, create jobs, and empower MSMEs.

"This will expand India's global economic footprint. - N. Ramchander Rao"

Hyderabad, February 7

The BJP president of the Telangana unit, N. Ramchander Rao, said on Saturday that India and the United States have reached an agreement on a Framework for an Interim Trade Agreement, a landmark decision that is expected to expand India's global economic footprint and create large-scale employment. He added that the deal, led by Prime Minister Narendra Modi, provides Indian exporters with unprecedented competitive advantages by securing zero-tariff access across a wide range of high-value goods, including gems, diamonds, pharmaceuticals, and aircraft components.

In a post on X, he wrote, "Under the visionary and decisive leadership of Hon'ble Prime Minister Shri Narendra Modi ji, India and the United States have agreed on a Framework for an Interim Trade Agreement. This will expand India's global economic footprint. It will unlock new export avenues, strengthen labour-intensive sectors, attract high-quality investment, and generate large-scale employment, particularly for women and youth. India has secured zero-tariff access across a wide spectrum of high-value goods, including gems and diamonds, pharmaceuticals, and aircraft components, giving Indian exporters an unprecedented competitive edge."

"Through PM Modi's decisive leadership, Indian MSMEs, farmers and fishermen are now poised to access a $30-trillion global market, setting the stage for sustained growth, job creation and long-term economic empowerment. I extend my gratitude to Prime Minister Shri Narendra Modi for his relentless efforts in opening historic pathways for prosperity and opportunity for our Country. Congratulations also to the people of India and the United States on this agreement. Modi ji's Reform Express is in full motion, powering India's march towards Viksit Bharat 2047," Rao added.

India and the US announced a framework for an Interim Agreement on February 6, regarding reciprocal and mutually beneficial trade. The joint statement said that the framework reaffirms the countries' commitment to the broader Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.

As per the joint statement, the US will apply a reciprocal tariff rate of 18 per cent on Indian originating goods, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery.

- ANI

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Reader Comments

S
Sarah B
While the agreement sounds promising, the article mentions the US will apply an 18% tariff on many Indian goods like textiles and leather. That seems quite high. I hope our negotiators secured good terms to balance this out for our industries.
P
Priya S
Access to a $30-trillion market for our farmers and fishermen? If implemented well, this could be revolutionary for rural economies. But the proof will be in the pudding—we need to see actual contracts and supply chains being built.
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Rohit P
Good move! Strengthening ties with the US is crucial. The focus on aircraft components is smart—it aligns with our aerospace ambitions. Hope this brings in high-quality investment and tech transfer, not just market access.
M
Michael C
As someone working in the pharmaceutical sector, this news is very encouraging. Removing tariffs can make our generic medicines even more competitive globally. This could be a major win for healthcare access worldwide.
K
Kavya N
The mention of employment for women and youth is key. But frameworks and announcements are one thing. We need clear, transparent policies to ensure these opportunities are created on the ground, especially in tier-2 and tier-3 cities.
V
Vikram M
"Modi

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