NEW DELHI: Prime Minister Narendra Modi on Saturday welcomed the India-US interim commerce settlement, calling it a serious step in the direction of strengthening financial ties, boosting home manufacturing and creating jobs.In a put up on X, PM Modi stated: “Nice information for India and USA! We’ve agreed on a framework for an Interim Commerce Settlement between our two nice nations. I thank President Trump for his private dedication to strong ties between our international locations. This framework displays the rising depth, belief and dynamism of our partnership. It strengthens ‘Make in India’ by opening new alternatives for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and extra. It’s going to generate large-scale employment for ladies and kids. India and the US share a dedication to selling innovation and this framework will additional deepen funding and know-how partnerships between us. This framework may even strengthen resilient and trusted provide chains and contribute to world progress. As India strikes ahead in the direction of constructing a Viksit Bharat, we stay dedicated to constructing world accomplice”.India and the US earlier launched a joint assertion saying the framework for an interim commerce settlement, beneath which tariffs on Indian items coming into the US will likely be diminished from 50% to 18%. “The US and India are happy to announce that they’ve reached a framework for an Interim Settlement concerning reciprocal and mutually helpful commerce,” the assertion stated.The announcement follows months of negotiations after commerce talks stalled when Washington imposed 50% tariffs on Indian imports. Of those, 25% duties have been launched in August, with the US alleging that India was supporting Russia’s warfare efforts towards Ukraine by means of oil purchases.The framework additionally reaffirms each side’ dedication to negotiations on a broader US-India Bilateral Commerce Settlement, launched by Modi and US President Donald Trump in February 2025 amid extended commerce tensions linked to India’s power imports from Russia.Below the interim deal, the US will decrease tariffs to 18% on a variety of Indian merchandise, together with textiles and attire, leather-based and footwear, plastic and rubber items, natural chemical compounds, dwelling décor, artisanal merchandise and choose equipment. Topic to the profitable conclusion of the settlement, Washington has additionally stated it should take away tariffs on further Indian exports akin to generic prescribed drugs, gems and diamonds, and plane components.India, in flip, will eradicate or cut back tariffs on all US industrial items and a broad basket of meals and agricultural merchandise, together with dried distillers’ grains, pink sorghum for animal feed, tree nuts, contemporary and processed fruit, soybean oil, wine and spirits.Union commerce and trade minister Piyush Goyal stated the settlement protects India’s agriculture sector, with delicate farm and dairy merchandise totally safeguarded. These embrace maize, wheat, rice, soya, poultry, milk, cheese, ethanol for gas, tobacco, sure greens and meat.The framework additionally outlines India’s intent to buy $500 billion value of US power merchandise, plane and plane components, treasured metals, know-how merchandise and coking coal over the subsequent 5 years, a transfer anticipated to considerably increase bilateral commerce.On claims that India would finish Russian oil imports, New Delhi has not confirmed any such dedication. The federal government has reiterated that power safety stays its high precedence. “Diversifying our power sourcing consistent with goal market circumstances and evolving worldwide dynamics is on the core of our technique to make sure this,” MEA spokesperson Randhir Jaiswal stated.The settlement gives for preferential market entry for each international locations in key sectors. The US will take away tariffs on sure Indian plane and plane components imposed on nationwide safety grounds, whereas India will obtain preferential tariff price quotas for automotive components and negotiated outcomes for generic prescribed drugs and elements.Goyal stated the pact opens up a $30 trillion marketplace for Indian exporters, significantly MSMEs, farmers and fishermen, and is anticipated to create lakhs of jobs for ladies and youth.The framework additionally consists of steps to spice up digital and know-how commerce, with each side committing to handle boundaries to digital commerce, improve commerce in know-how merchandise together with GPUs and knowledge centre gear, and increase joint know-how cooperation.Each international locations have agreed to work on eradicating non-tariff boundaries affecting bilateral commerce. India will handle points associated to US medical gadgets, info and communication know-how items, and meals and agricultural merchandise, eradicate restrictive import licensing and assessment requirements inside six months to ease market entry.Officers stated the framework paves the way in which for finalising the interim settlement and advancing negotiations on a complete bilateral commerce settlement, with scope for additional tariff reductions.