‘Great news for India and USA’: PM Modi hails landmark trade pact with Trump, predicts job surge for women and youth

“We have agreed on a framework for an Interim Trade Agreement between our two great nations,” Modi wrote. “I thank President Trump for his personal commitment to robust ties between our countries.”

Great news for India and USA!

We have agreed on a framework for an Interim Trade Agreement between our two great nations. I thank President Trump for his personal commitment to robust ties between our countries.

This framework reflects the growing depth, trust and dynamism of… https://t.co/zs1ZLzamhd

— Narendra Modi (@narendramodi) February 7, 2026

PM Modi said the framework showed the “depth, trust and dynamism” of the India–US partnership and would support domestic growth in India. He said it would strengthen the government’s Make in India programme by creating new opportunities for farmers, entrepreneurs, small businesses, start-ups, fishermen and innovators.

“It will generate large-scale employment for women and youngsters,” PM Modi said.

He added that both countries shared a strong focus on innovation and that the framework would deepen investment and technology partnerships, including in advanced sectors.

However, PM Modi mentioned that the agreement would also help build “resilient and trusted supply chains” and support global economic growth.

“As India moves forward towards building a Viksit Bharat, we remain committed to building global partnerships that are future-oriented, empower our people and contribute to shared prosperity,” he said.

The interim framework follows months of negotiations between New Delhi and Washington under broader talks on a US–India Bilateral Trade Agreement, launched in February 2025.

Under the proposed framework, India has agreed to eliminate or reduce tariffs on US industrial goods and cut duties on a wide range of American farm and food products. These include animal feed, nuts, fruit, soybean oil, wine and spirits. India will also work to address non-tariff barriers affecting US medical devices, information and communications technology goods, and agricultural imports.

For its part, the United States will apply a reciprocal tariff rate of 18% on Indian goods such as textiles, clothing, leather, footwear and machinery. Washington has also agreed to remove tariffs on selected products, including certain aircraft and aircraft parts, generic pharmaceuticals, gems and diamonds.

India has said it plans to purchase around $500 billion worth of US goods over five years, including energy products, aircraft, precious metals, technology equipment and coking coal.

Both sides have said the interim framework will be implemented quickly, while work continues towards a full and mutually beneficial trade agreement.