Amitabh Kant Lauds India-US Interim Trade Agreement as Major Strategic Victory
Former G20 Sherpa and ex-NITI Aayog CEO Amitabh Kant on Saturday enthusiastically welcomed the India-US trade deal, following the release of a joint statement on a mutually beneficial Interim Agreement designed to unlock significant new opportunities for both nations. In a detailed post on social media platform X, Kant emphasized that this agreement provides India with a crucial competitive advantage over key rivals such as Bangladesh and Vietnam, as tariffs on Indian goods are dramatically reduced to 18%.
Tariff Reduction and Export Opportunities
The interim trade deal slashes US tariffs on Indian goods from a steep 50% down to a more favorable 18%, opening up massive export potential across multiple sectors. Kant highlighted that this move will particularly benefit Indian exporters in textiles, pharmaceuticals, gems and jewelry, footwear, and several other industries. He noted that this tariff adjustment is a game-changer, enabling Indian products to become more price-competitive in the lucrative American market.
Protecting Key Sectors and Job Creation
Amitabh Kant further elaborated that the agreement allows India to safeguard its sensitive agriculture and dairy sectors while simultaneously generating lakhs of new employment opportunities. "India gains a competitive edge over rivals like Vietnam and Bangladesh while protecting our agriculture and dairy sectors, creating lakhs of new jobs, especially for women and youth, and powering digital infrastructure and Make-in-India initiatives," he stated. This dual focus on protection and growth is seen as a balanced approach to economic development.
Strategic Implications and Leadership Credit
Kant described the deal as a strategic win for India, crediting Prime Minister Narendra Modi for his leadership in securing the agreement. He also extended thanks to Commerce Minister Piyush Goyal and Commerce Secretary Rajesh Agarwal for their diligent efforts in negotiating the terms. Additionally, Kant pointed out that the India-US trade deal will contribute to strengthening the Indian rupee, enhancing economic stability. "This is a strategic win that strengthens supply chains against China and supports Rupee stability. Mutually beneficial bilateral relationships is a key step towards Viksit Bharat," he affirmed.
Details of the Interim Agreement
India and the United States announced a framework for an Interim Agreement on February 6, focusing on reciprocal and mutually beneficial trade. According to the joint statement, the US will apply a reciprocal tariff rate of 18% on Indian-originating goods, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery. This framework reaffirms both countries' commitment to broader Bilateral Trade Agreement negotiations, which were launched in February 2025.
Government Reactions and Key Achievements
The deal was formally announced by the White House and Commerce Minister Piyush Goyal. Addressing a press conference later on Saturday, Goyal declared that this day would be "etched in golden letters." He highlighted the key achievement of the agreement, stating, "A $30 trillion economy is now open to our exporters. This joint statement gives every Indian citizen an opportunity for new hope, enthusiasm, and new resolutions. The 50% tariff that Indian exporters faced will now be only 18%. We will have the lowest tariffs compared to our neighbouring countries. Exporters of gems and pharmaceuticals will face zero duty in the US." This underscores the transformative potential of the deal for Indian businesses and the broader economy.
