Ramachander Rao Calls India-US Trade Agreement a Historic Economic Leap

In a significant milestone for India’s economic journey, the countries have finalized a draft Interim Trade Agreement . Telangana BJP state president N. Ramachander Rao said on Saturday that this historic deal will not only expand India’s global economic presence but also generate substantial employment opportunities nationwide.

Speaking on social media platform X, Ramachander Rao praised Prime Minister Narendra Modi’s visionary leadership in driving this pivotal decision between India and the US. He highlighted that the agreement will enhance the international competitiveness of Indian exporters, particularly in high-value sectors like gems, diamonds, pharmaceuticals, and aircraft components , which will now benefit from zero tariffs .

He added that the deal paves the way for Indian MSMEs, farmers, fishermen, and small businesses to tap into the $30 trillion global market . The agreement is also expected to boost investments , strengthen labor-intensive industries, and increase employment opportunities for women and youth .

Background of the Agreement

A joint statement on February 6 confirmed that India and the US agreed on a framework for an interim trade pact focused on mutual benefits. This follows the bilateral trade negotiations that began on February 13, 2025 , between Prime Minister Modi and former US President Donald Trump. Both nations will also work together to strengthen supply chains and expand market access .

Under the agreement, the US will cut tariffs on Indian exports from 18% , covering sectors such as textiles, garments, leather, footwear, plastics, rubber, organic chemicals, home décor, handicrafts, and certain machinery items . Full implementation could eventually result in complete tariff elimination for key sectors .

Towards a Developed India

Ramachander Rao expressed confidence that India, under Prime Minister Modi, is progressing steadily toward the vision of a developed nation by 2047 . He thanked the Prime Minister for paving the way for historic initiatives that drive national growth and expressed optimism that the agreement would strengthen supply chains and support long-term economic self-reliance .