Uttar Pradesh Chief Minister Yogi Adityanath has expressed his support for the newly announced interim framework of the US-India trade agreement, describing it as a pivotal moment for the “Make in India” initiative. He emphasized that the framework will enhance global market access for Indian products and described the announcement as a landmark achievement.
In his remarks, Adityanath commended Prime Minister Narendra Modi for his “decisive and dynamic leadership” in establishing what he termed an “India-first” agreement. He articulated the significance of the framework in reinforcing the economic partnership between India and the United States.
Trade Framework Aims to Empower Various Sector
Yogi Adityanath outlined that this trade framework would not only broaden access for Indian exports but also protect the interests of farmers and ensure food security and rural livelihoods. He expressed gratitude towards Prime Minister Modi for securing a balanced agreement that energizes exports and strengthens supply chains.
The interim trade framework is part of a broader effort between the two nations to negotiate a more comprehensive Bilateral Trade Agreement (BTA), initiated during talks between former US President Donald Trump and Prime Minister Modi on February 13, 2025. The agreement is expected to involve additional market access provisions and promotion of resilient supply chains.
Key Elements of the Trade Agreement
As detailed in the joint statement accompanying the announcement, the United States will implement a reciprocal tariff rate of 18 percent on a range of Indian-origin goods. This includes textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, artisanal products, and certain types of machinery.
Furthermore, the United States plans to eliminate tariffs on specific aircraft and parts imported from India, which had previously been imposed due to national security concerns. In response, India has pledged to remove or lower tariffs on nearly all U.S. industrial goods and a variety of food products.
Long-term Commitments to Energy and Technology Purchases
India is also set to make significant purchases of U.S. products over the next five years, including energy resources, aircraft, precious metals, and technology products. The total projected expenditure for these acquisitions is estimated to reach $500 billion.
The framework aims to establish a more reciprocal trading relationship, thereby opening up new avenues for economic cooperation between the two nations. It underscores the ongoing commitment from both India and the U.S. to enhance bilateral trade while addressing the needs of various sectors within both economies.
