INDIA AND US UNVEIL FRAMEWORK FOR INTERIM TRADE AGREEMENT. (PHOTO).

India and US unveil framework for interim trade agreement

 India and the United States have released a framework for an interim trade agreement aimed at lowering tariffs on Indian goods, a move that has sparked political backlash in New Delhi. The announcement followed President Donald Trump’s recent decision to scale back import tariffs on India after months of pressure tied to New Delhi’s energy purchases from Russia. Under the framework, tariffs on Indian exports to the U.S. would be reduced to 18% from 25%, after Prime Minister Narendra Modi agreed to halt purchases of Russian crude oil, according to Trump. The two governments described the arrangement as reciprocal and mutually beneficial, saying it is intended as a stepping stone toward a broader trade agreement that would expand market access and strengthen supply chains. Both sides acknowledged that further negotiations will be required before the deal is finalized and formally implemented.

Under the proposed framework, India would also eliminate or significantly reduce tariffs on U.S. industrial goods and a wide range of agricultural and food products. Trump has said India would move toward zero tariffs on many American exports and commit to purchasing $500 billion worth of U.S. goods over five years, part of a broader effort by his administration to secure near-zero tariffs for American products abroad. Trump also signed an executive order revoking a separate 25% tariff imposed on Indian goods last year. Modi praised Trump’s personal involvement in advancing the agreement, calling it a reflection of growing trust and cooperation between the two countries and saying it would deepen investment and technology ties. Opposition parties in India, however, criticized the framework as overly favorable to Washington and warned it could harm sensitive sectors such as agriculture and dairy, which employ a large share of the population. Trade Minister Piyush Goyal pushed back against those claims, saying key agricultural and dairy products remain protected while the deal opens vast opportunities for Indian exporters, including zero tariffs on goods such as generic pharmaceuticals, gems and diamonds, and aircraft parts. He said the agreement could unlock access to the U.S. economy and generate hundreds of thousands of new jobs, as India continues to expand its global trade footprint through recent agreements with Europe, the Middle East, and the Asia-Pacific region.