New Delhi [India], February 7 (ANI): Union Finance Minister Nirmala Sitharaman on Saturday hailed the India-United States interim trade deal, expressing commitment to bilateral ties.

Sharing the joint statement issued by India and the US on X, Sitharaman said, 'India-US issue a joint statement: announces 'a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement).' We remain committed to negotiating the broader U.S.-India Bilateral Trade Agreement (BTA).'

The two nations have announced a framework for an interim agreement on reciprocal and mutually beneficial trade in a step toward advancing the broader US-India Bilateral Trade Agreement (BTA) negotiations launched by Prime Minister Narendra Modi and President Donald Trump in February 2025, a joint statement released by the White House and Commerce Ministry stated.

As per the agreement, the US will apply a reciprocal tariff rate of 18 per cent on Indian-originating goods, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery.

The United States will also remove tariffs on certain aircraft and aircraft parts of India imposed to eliminate threats to national security, the joint statement said.

According to the statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of S food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

As per the deal, India also intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.

Earlier today, Union Commerce Minister Piyush Goyal lauded India's framework for the Interim Agreement, stating that it would unlock access to a USD 30 trillion market for Indian exporters, particularly benefiting MSMEs, farmers, and fishermen.

In an X post, Goyal stated that an agreement would significantly boost exports and create lakhs of new jobs, especially for women and youth.

'Under the decisive leadership of PM Narendra Modi, India has reached a framework for an Interim Agreement with the US. This will open a USD 30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen. The increase in exports will create lakhs of new job opportunities for our women and youth,' the X post said.

The Commerce Minister asserted that under the framework, the US will reduce reciprocal tariffs on Indian goods to 18%, creating major opportunities in sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods, and select machinery in the world's largest economy.

'As part of this framework, the US will slash reciprocal tariffs on Indian goods to 18%, providing a huge market opportunity in key sectors such as textiles & apparel, leather & footwear, plastic & rubber products, organic chemicals, home decor, artisanal products, and select machinery in the world's largest economy,' the X post added.

'Additionally, tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thereby further enhancing India's export competitiveness and Make in India. India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors,' the post read. (ANI)