‘Great News for India and US’: PM Narendra Modi Welcomes Interim Trade Agreement Framework, Says It Will Boost Make in India and Jobs
Prime Minister Narendra Modi announced on Saturday that India and the United States have reached a landmark framework for an Interim Trade Agreement.
New Delhi, February 7: Prime Minister Narendra Modi announced on Saturday that India and the United States have reached a landmark framework for an Interim Trade Agreement. In a statement shared on X (formerly Twitter), the Prime Minister characterized the development as "great news" for both nations, emphasizing that the agreement marks a significant step toward deepening economic ties and securing global supply chains. The framework is expected to provide a major boost to India’s "Make in India" initiative and create extensive employment opportunities across multiple sectors.
Strengthening Economic Ties
The Prime Minister expressed his gratitude to U.S. President Donald Trump for his "personal commitment" to fostering robust bilateral relations. According to PM Modi, the new framework reflects the "growing depth, trust, and dynamism" of the India-U.S. partnership. The agreement is designed to open new avenues for a wide range of Indian stakeholders, including farmers, MSMEs (Micro, Small, and Medium Enterprises), startup innovators, and entrepreneurs. The Prime Minister highlighted that the deal would be particularly beneficial for women and young people, generating large-scale employment through expanded market access. ‘India Has Committed to Stop Importing Russian Oil’, Says White House As It Removes 25% Additional Tariff on India.
Strategic Innovation and Supply Chains
Beyond immediate trade benefits, the framework aims to deepen investment and technology partnerships. PM Modi noted that both nations share a commitment to promoting innovation, which will be central to the evolving relationship. The agreement also addresses the global need for "resilient and trusted supply chains." By aligning their trade interests, India and the U.S. intend to contribute to more stable global growth. "As India moves forward towards building a Viksit Bharat (Developed India), we remain committed to building global partnerships that are future-oriented," the Prime Minister added.
Background and Market Impact
The announcement follows a period of intensive negotiations aimed at reducing trade barriers between the world's two largest democracies. Union Commerce Minister Piyush Goyal previously noted that such a framework could unlock access to a $30 trillion market for Indian exporters. While the full details of the specific tariff reductions under this interim stage are being finalized, the framework serves as a precursor to a comprehensive Bilateral Trade Agreement (BTA). Key sectors expected to benefit include textiles, pharmaceuticals, and technology, specifically in the areas of high-end electronics and energy. US-India Interim Trade Framework: What’s Inside the Deal That Could Reshape US-India Trade Ties.
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Path to 'Viksit Bharat'
The framework is seen as a pillar of India's long-term goal to become a developed economy by 2047. By securing "shared prosperity" through international cooperation, the government aims to empower its domestic workforce while integrating more deeply with the American economy. Officials from both sides are expected to continue technical discussions to implement the framework's provisions, ensuring that the benefits reach the grassroots level of the Indian economy as envisioned by the Prime Minister.
(The above story first appeared on LatestLY on Feb 07, 2026 08:38 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).