India–US Interim Trade Agreement Signals New Momentum for Bilateral Economic Partnership

New Delhi, Feb 2026 : As India and the United States finalised a framework for an Interim Trade Agreement that reduces US tariffs on Indian goods to 18 per cent, senior leaders from both sides on Saturday described the development as a major step towards a stronger, mutually beneficial economic partnership. The agreement is being seen as a milestone that enhances market access, boosts exports, and reinforces India’s flagship ‘Make in India’ initiative.

External Affairs Minister S. Jaishankar welcomed the development, stating that the framework would help realise a balanced and forward-looking India–US trade relationship. Taking to social media platform X, Jaishankar said the Interim Agreement framework would ensure greater market access and open new opportunities for Indian exporters across sectors. He underlined that the agreement would create fresh avenues for Indian businesses and strengthen the country’s manufacturing and export ecosystem.

“The framework will ensure greater market access and opportunities for our exporters. New vistas have opened up that will further promote ‘Make in India’,” Jaishankar said, highlighting the agreement’s role in expanding India’s global trade footprint.

Prime Minister Narendra Modi also hailed the agreement, calling it “great news” for both India and the United States. In a post on X, the Prime Minister thanked US President Donald Trump for his personal commitment to strengthening bilateral ties and said the agreement reflected the growing depth and trust between the two democracies.

“This framework reflects the growing depth, trust and dynamism of our partnership. It strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, startup innovators, fishermen and more,” PM Modi said. He added that the agreement would generate large-scale employment opportunities, particularly for women and young people, while providing a strong push to domestic manufacturing.

Emphasising the broader strategic significance of the framework, the Prime Minister said India and the United States share a common commitment to promoting innovation. According to him, the Interim Trade Agreement will further deepen investment and technology partnerships between the two countries, strengthen resilient and trusted supply chains, and contribute to global economic growth.

“As India moves forward towards building a Viksit Bharat, we remain committed to building global partnerships that are future-oriented, empower our people and contribute to shared prosperity,” PM Modi added.

Earlier, Commerce and Industry Minister Piyush Goyal said the agreement would help India and the United States remain focused on deepening economic cooperation while reflecting their shared commitment to sustainable growth. He noted that the framework would open access to a $30 trillion US market for Indian exporters, especially benefiting MSMEs, farmers and fishermen.

According to Goyal, the expected rise in exports would create lakhs of new job opportunities, particularly for women and youth, while enhancing India’s competitiveness in the world’s largest economy. The tariff reduction is expected to provide a significant boost to several labour-intensive and high-growth sectors, strengthening India’s export-led growth strategy.

Together, statements from India’s top leadership signal that the Interim Trade Agreement is not just a commercial arrangement but a strategic move to elevate the India–US partnership, align economic interests, and lay the groundwork for deeper collaboration in trade, technology and innovation in the years ahead.

Team Maverick.