India-US Interim Trade Agreement to Drive Significant Export Growth, Says Former Foreign Secretary
In a significant development for international trade, Rajya Sabha MP and former Foreign Secretary Harsh Vardhan Shringla has projected a substantial increase in Indian exports to the United States following the recent India-US Interim Trade Agreement. Speaking to reporters in Kolkata, West Bengal, on Saturday, Shringla emphasized that this deal provides much-needed clarity and advantages to the Indian business community.
Key Advantages for Indian Exporters and Industries
Shringla highlighted the strategic importance of this agreement, noting that it comes on the heels of a major trade deal with the European Union involving 27 countries. "This is a very important deal because it comes soon after we have concluded the mother of all deals with the European Union," he stated. He further explained that the US trade agreement offers Indian exporters, small industrialists, farmers, and laborers a competitive edge over global rivals. "I would say that our exports to the United States are going to increase very significantly," he affirmed.
The former foreign secretary outlined the economic benefits, pointing to access to a massive US market valued at approximately 30 trillion dollars. When combined with the EU market, this totals nearly 60 trillion dollars in potential trade opportunities. "This is very good news for all of our people, especially our youth," Shringla added, referencing Prime Minister Narendra Modi's recent comments in Parliament.
Government Support and Broader Implications
Earlier on the same day, External Affairs Minister S. Jaishankar praised the interim agreement, stating that it will ensure greater market access for Indian exporters. In a social media post, Jaishankar noted that the framework supports the government's 'Make in India' vision. "The framework for an Interim Agreement will realise a mutually beneficial India-US trade partnership. It will ensure greater market access and opportunities for our exporters, opening new vistas that further promote Make in India," he wrote.
According to a joint statement released by the White House and India's Commerce Ministry, the two nations have established a framework for an Interim Agreement on reciprocal and mutually beneficial trade. This step advances the broader US-India Bilateral Trade Agreement (BTA) negotiations initiated by Prime Minister Narendra Modi and former President Donald Trump in February 2025.
Details of the Trade Agreement
The agreement specifies that the United States will apply a reciprocal tariff rate of 18 per cent on Indian-originating goods. Key sectors benefiting from this arrangement include:
- Textiles and apparel
- Leather and footwear
- Plastic and rubber products
- Organic chemicals
- Home decor items
- Artisanal products
- Certain machinery
This targeted approach is expected to boost exports in these critical industries, enhancing India's trade footprint in the US market. The interim deal is seen as a precursor to a more comprehensive bilateral trade agreement, fostering stronger economic ties between the two nations.
Overall, the India-US Interim Trade Agreement is poised to transform trade dynamics, offering Indian businesses unprecedented access to lucrative markets and driving economic growth through increased exports and job creation.
