Interim India–US trade pact to boost growth: Home Minister

Union Home Minister Amit Shah on Saturday hailed the interim trade agreement between India and the United States , saying it would give “another boost to India’s roaring growth engine” and speed up the country’s journey towards a Viksit Bharat . In a post on X, Shah said the agreement translates Prime Minister Narendra Modi’s vision into reality and would trigger growth across sectors, benefiting Make in India initiatives, farmers, entrepreneurs, MSMEs, start-up innovators and fishermen, while also creating employment opportunities for youth and women.

Calling the pact landmark, Shah expressed gratitude to the Prime Minister and congratulated the citizens of India on what he described as a major step forward in strengthening India–US economic ties.

India and the United States earlier in the day announced that they had finalised the framework for the first phase of a bilateral trade agreement aimed at boosting two-way trade through reciprocal tariff reductions . According to a joint statement, the framework reaffirms the commitment of both sides to the broader US–India Bilateral Trade Agreement (BTA) negotiations, which were launched by Prime Minister Narendra Modi and US President Donald Trump on February 13, 2025.

Under the interim agreement, the United States will reduce tariffs on Indian goods to 18 per cent from the existing 50 per cent. In return, India will eliminate or lower import duties on all American industrial goods and on a wide range of food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits.

Officials said the interim trade deal is intended to operate as a temporary , first-phase arrangement and will remain in force until the broader BTA is negotiated and finalised, effectively bridging the gap between the launch of negotiations and a comprehensive trade pact. The first phase of the agreement is expected to be signed by mid-March .