Modi hails interim trade framework with US as big win for jobs, MSMEs and startups; Thanks Trump for 'personal commitment'

India and the United States have agreed on a framework for an interim trade agreement, marking a major step forward in strengthening economic and strategic ties between the two nations. The India-US interim trade framework is expected to deepen cooperation across sectors, improve market access, and open fresh opportunities for exporters, small businesses, and workers.

Prime Minister Narendra Modi described the development as a reflection of the growing trust and depth in the partnership between New Delhi and Washington.

Read more: India-US interim trade deal framework unveiled

PM Modi hails growing India-US partnership

In a post on X, Modi thanked U.S. President Donald Trump for his personal commitment to strengthening bilateral ties and said the agreement would create new economic opportunities across sectors.


“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,” Modi wrote.

He said the India-US trade deal framework would directly support the government’s flagship Make in India initiative.

“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. It will generate large-scale employment for women and youngsters.”

$30 trillion US market opens for Indian exporters

Commerce and Industry Minister Piyush Goyal said the India-US trade pact will open access to the $30 trillion U.S. economy, offering huge growth potential for Indian exporters, particularly MSMEs, farmers and fishermen.

“Under the decisive leadership of PM Narendra Modi, India has reached a framework for an Interim Agreement with the US. This will open a USD 30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen,” Goyal said.

He added that the rise in exports is expected to create lakhs of new jobs, especially for women and youth.

Tariff cuts to benefit key sectors

Key sectors likely to benefit include:

• Textiles and apparel
• Leather and footwear
• Plastic and rubber products
• Organic chemicals
• Home décor and artisanal goods
• Select machinery

Additionally, tariffs will fall to zero on several goods, including:

• Generic pharmaceuticals
• Gems and diamonds
• Aircraft parts

These measures are expected to significantly enhance India’s export competitiveness and strengthen the Make in India campaign.

Special exemptions and quotas for India
India will also receive:

• Exemptions on aircraft parts
• A tariff-rate quota on auto parts
• Negotiated outcomes on generic pharmaceuticals

Goyal said these steps would lead to tangible export gains and expand India’s manufacturing footprint globally.

Farmers’ interests fully protected

At the same time, the government stressed that the agreement protects India’s rural economy. Sensitive agricultural and dairy products will remain shielded.

Items fully protected include maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, certain vegetables and meat.

The minister said this ensures farmers’ interests and rural livelihoods remain safeguarded while trade expands in other areas.

Focus on technology, supply chains and future growth

Modi also highlighted that the India-US trade framework will promote innovation, technology partnerships, and resilient supply chains.

“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,” he said.

The interim framework will be implemented promptly, while both sides continue negotiations toward a full bilateral trade agreement in the coming months. Officials believe the deal will strengthen trade, create jobs, and further cement the India-US strategic partnership.

Inputs from agencies