Delhi: India and the United States have taken a decisive step toward reshaping their economic relationship by announcing an interim agreement on reciprocal trade. The development was confirmed through a joint statement released on Saturday, marking a fresh phase in bilateral commerce driven by strategic and economic interests.
External Affairs Minister Dr. S. Jaishankar welcomed the move and described it as a foundation for a stronger and more balanced partnership. “This framework will help build a mutually beneficial India–US trade relationship. It will expand market access for Indian exporters and create new opportunities while giving a push to Make in India,” Jaishankar said in a post on X.
The interim arrangement places strong emphasis on economic security and tangible outcomes for both countries. As part of the understanding, India will reduce tariffs on several American industrial goods and a broad range of US agricultural and food products. In exchange, Washington has revised duties on key Indian exports entering the US market.
Under the new terms, the United States will impose a reciprocal tariff of 18 per cent on Indian products such as textiles and apparel, leather and footwear, plastics, rubber goods, home décor, handicrafts and select machinery. This is a major reduction from the earlier tariff levels that had climbed to nearly 50 per cent amid disagreements over India’s energy purchases from Russia.
The reduced tariff structure is expected to bring significant relief to Indian exporters, particularly in labour-intensive sectors, allowing them to compete more effectively in the American market and expand overseas shipments.
In a notable boost to India’s aviation and defence manufacturing sectors, the US has also agreed to remove tariffs on certain Indian aircraft and aircraft components, citing national security considerations. Industry watchers believe this decision could accelerate collaboration in aerospace manufacturing and defence supply chains.
