India-US Free Trade Deal Marks New Era, But Long Road Ahead

The India-US Free Trade Agreement, signed earlier this week by Prime Minister Narendra Modi and US President Donald Trump, has set the stage for a new chapter in bilateral economic ties. The deal includes tariff reductions on Indian exports and enhanced cooperation in critical minerals and supply chains, strengthening India’s competitiveness in global trade.

However, the US State Department emphasized that the agreement is “only the beginning,” flagging a long road ahead for both nations. Margaret MacLeod, spokesperson for the department, noted that while the deal is outcome-oriented and productive, further negotiations will be required to address sensitive sectors and ensure balanced growth.

Indian External Affairs Minister S. Jaishankar also highlighted the momentum in strategic cooperation, including defence, energy, and technology, underscoring the broader scope of the partnership.

Key Highlights

• India-US Free Trade Agreement signed by PM Modi and President Trump.
• Tariff cuts: US tariffs on Indian goods reduced significantly, boosting exports.
• Critical minerals cooperation: Strengthening supply chain resilience.
• US State Department caution: Deal is “only the beginning,” with long negotiations ahead.
• Jaishankar’s view: Strong momentum in defence, energy, and strategic ties.

Sources: ANI, Reuters, Business Standard, The Hindu