New Delhi
Former G20 Sherpa and ex-NITI Aayog CEO Amitabh Kant on Saturday said that the India–US interim trade agreement will give India a competitive advantage over countries such as Vietnam and Bangladesh, while safeguarding sensitive sectors like agriculture and dairy.
In a post on social media platform X, Kant noted that the framework agreement has sharply reduced US tariffs on Indian goods to 18 per cent from the earlier level of 50 per cent, opening up significant export opportunities for Indian industries.
India and the US interim trade deal slashes US tariffs on Indian goods to 18% from a severe 50%, unlocking massive opportunities for our exporters in textiles, pharma, gems, footwear and more.
— Amitabh Kant (@amitabhk87) February 7, 2026
India gains a competitive edge over rivals like Vietnam and Bangladesh while… https://t.co/JFnWLffAwo
He said the tariff reduction would boost sectors such as textiles, pharmaceuticals, gems and jewellery, footwear and other labour-intensive industries, enabling India to gain an edge over regional competitors. Kant added that the agreement is expected to generate large-scale employment, particularly benefiting women and young workers, while also supporting initiatives such as Make in India and the expansion of digital infrastructure.
Calling the deal a strategic success, Kant said it would help strengthen global supply chains by reducing dependence on China and also contribute to maintaining stability of the Indian rupee.
“This is a strategic win that reinforces supply chain resilience and supports currency stability,” he said, crediting Prime Minister Narendra Modi for providing strong leadership and vision. Kant also praised Commerce and Industry Minister Piyush Goyal and Commerce Secretary Rajesh Agrawal for their role in driving the negotiations forward, adding that mutually beneficial trade partnerships are crucial for achieving the goal of a developed India.
On February 6, India and the United States announced a framework for an Interim Trade Agreement aimed at promoting reciprocal and mutually beneficial market access. The joint statement reaffirmed both countries’ commitment to advancing negotiations under the broader Bilateral Trade Agreement (BTA) launched by President Donald Trump and Prime Minister Narendra Modi in February 2025.
READ MORE: Muslims must prioritise education for girls: Ex-Maha minister Anees Majeed Ahmed
Under the framework, the US will levy a reciprocal tariff of 18 per cent on select Indian-origin products, including textiles and apparel, leather and footwear, plastic and rubber goods, organic chemicals, handicrafts, home décor items and certain machinery. The US will also remove tariffs on specific aircraft and aircraft components imported from India that were earlier imposed on national security grounds.
