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India-US Trade Deal Opens New Vistas for 'Make in India', Says Jaishankar

External Affairs Minister S Jaishankar hailed the India-US interim trade agreement, stating it will open new vistas to promote the 'Make in India' initiative. The agreement framework ensures greater market access for Indian goods like textiles and machinery, with the US applying an 18% reciprocal tariff. In return, India will eliminate or reduce tariffs on US industrial and agricultural goods and intends to purchase $500 billion worth of US energy products and aircraft over five years. Commerce Minister Piyush Goyal added that the deal unlocks access to a $30 trillion market, boosting exports and creating jobs.

Key Points: India-US Interim Trade Agreement to Boost 'Make in India'

  • Greater market access for Indian exporters
  • US applies 18% tariff on key Indian goods
  • India to buy $500B of US energy & aircraft
  • Deal benefits MSMEs, farmers, and fishermen
2 min read

'New vistas opened up to promote Make in India': EAM S Jaishankar hails India-US interim trade agreement

EAM Jaishankar hails India-US trade deal for greater market access. Agreement cuts tariffs, aims for $500B US energy & aircraft purchases.

"New vistas have opened up that will further promote Make in India - S Jaishankar"

New Delhi, February 7

External Affairs Minister S Jaishankar on Saturday lauded the India-United States interim trade agreement, stating that the deal will ensure greater market access for Indian exporters.

In an X post, Jairshankar said the agreement will support the Centre's 'Make in India' vision.

"The framework for an Interim Agreement will realise a mutually beneficial India - US trade partnership. The framework will ensure greater market access and opportunities for our exporters. New vistas have opened up that will further promote Make in India," the EAM said.

The two nations announced a framework for an Interim Agreement on reciprocal, mutually beneficial trade, a step toward advancing the broader US-India Bilateral Trade Agreement (BTA) negotiations launched by Prime Minister Narendra Modi and President Donald Trump in February 2025, according to a joint statement released by the White House and the Commerce Ministry.

As per the agreement, 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.

The United States will also remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats, the joint statement said.

According to the statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of S food and agricultural 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.

As per the deal, India also intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.

Earlier today, Union Commerce Minister Piyush Goyal lauded India's framework for the Interim Agreement, stating that it would unlock access to a USD 30 trillion market for Indian exporters, particularly benefiting MSMEs, farmers, and fishermen. In an X post, Goyal stated that an agreement would significantly boost exports and create lakhs of new jobs, especially for women and youth.

- ANI

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Reader Comments

P
Priya S
While the deal sounds promising, I hope our farmers are protected. Reducing tariffs on US agricultural products could hurt our local farmers if not managed carefully. The government must ensure a level playing field.
R
Rohit P
Finally! Access to the US market for textiles, leather, and machinery without crippling tariffs is what our exporters have been waiting for. This should boost manufacturing and create jobs. Good move.
S
Sarah B
Interesting to see the focus on aircraft parts. If this helps our aviation and defense manufacturing sector grow, it's a strategic win. The $500 billion purchase commitment from India seems massive though.
K
Karthik V
Bahut accha! Our home decor and artisanal products getting a direct channel to the US is excellent news for small towns and villages. Hope the benefits reach the grassroots and aren't just for big corporates.
M
Michael C
The reciprocal 18% tariff seems reasonable. The key will be implementation and ensuring non-tariff barriers don't pop up. Long-term, a full BTA could solidify India's position in global supply chains.

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