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The joint statement on the India–US interim trade agreement appears broadly positive for the Indian pharmaceutical sector, according to Systemactix, with the framework likely to preserve — and in some cases improve — India’s export positioning in the US market.

Under the agreement, India is expected to receive preferred (lower) tariff treatment for several pharmaceutical products. Importantly, generic drugs are set to remain exempt from tariffs in the near term while Section 232 investigations are ongoing, and are likely to continue enjoying preferential rates even after those probes conclude.

Systemactix notes that organic chemicals — including generic and innovator APIs — could attract an 18 per cent tariff under the new regime. However, this rate is still viewed as relatively competitive, suggesting limited risk to profitability. The firm believes most of any incremental cost is likely to be passed on to customers rather than squeezing exporter margins.

Once Section 232 investigations are completed, tariffs on generic APIs and formulations could be revised, but Indian exports are still expected to retain preferred status, reducing the risk of a sharp negative impact.

Another key aspect of the pact is that both countries have agreed to jointly define rules of origin — that is, how the source country of a product is determined for tariff purposes. Systemactix highlights that benefits under the agreement are mutually exclusive, meaning concessions are specific to India–US trade and not automatically extended to third countries.

The recently announced India–US interim trade agreement could have significant macro and market implications for India, particularly by supporting the rupee and reviving foreign investment flows, according to Mihir Vora, Chief Investment Officer at Trust Mutual Fund.

Assam Chief Minister Himanta Biswa Sarma on Saturday said India and the US securing a framework for an interim trade agreement will empower diverse sectors of the country.

Mihir Vora, Chief Investment Officer at Trust Mutual Fund, has described the India–US interim trade agreement as a significant positive for India’s macro and market outlook.

According to Vora, the deal should help stabilise the rupee and create conditions for a revival in foreign portfolio investment (FPI) inflows into Indian markets. He said the reduced trade frictions with the US place India on “stronger footing” relative to other export-driven economies such as Vietnam, Thailand, Bangladesh and even China.

Union Minister for Commerce and Industry Piyush Goyal is scheduled to address a press conference later today on the recently issued India–US Joint Statement on the interim trade agreement.

The briefing is expected to begin at around 1:30 PM, where the minister is likely to clarify key elements of the pact, its implications for Indian exporters, and the next steps in the bilateral trade process.

Under the interim trade agreement with the US, India has fully protected sensitive agricultural and dairy products such as maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat as no duty concessions will be granted to America on these goods.

According to the PIB statement, in the event of any changes to the agreed upon tariffs of either country, the US and India have agreed that the other country may modify its commitments.

India and the US will significantly increase trade in technology products, including Graphics Processing Units and other goods used in data centers.

Effective with respect to goods entered for consumption, India products imported into the US will no longer be subject to the additional ad valorem rate of duty of 25%.

India’s latest interim trade agreement with the US cuts the tariff on Indian chemical exports from 50% to 18%. Indian companies gain from both lower duties and an added advantage over Chinese competitors who face twice as much duty on their products shipped to the US.

Under the trade agreement, the US and India will address burdensome practices and other barriers to digital trade will set a clear pathway to achieve robust, ambitious, and mutually beneficial digital trade rules.

India–US interim trade deal LIVE updates: The US and India commit to provide each other preferential market access in sectors of respective interest on a sustained basis, says the White House statement.

India has fully protected sensitive agricultural and dairy products such as maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat, as no duty concessions have been granted to the US on these goods under the trade agreement.

US President Donald Trump is expanding American farmers and producers’ access to one of the largest economies in the world under a trade deal with India, the United States Trade Representative has (USTR) said.

The agency, responsible for developing and promoting US foreign trade policies, also said that India has committed to eliminating or lowering tariffs for all US industrial goods and a wide array of agricultural products.

“From tree nuts and dried distillers’ grains to red sorghum and fresh and processed fruit, the US-India agreement will provide new market access for American products,” the USTR said in a social media post on Friday local time.

“President Trump is expanding American farmers and producers’ access to one of the largest economies in the world, with India committing to eliminate or lower tariffs for all US industrial goods and a wide array of agricultural products; address long-standing non-tariff barriers to trade; buy more American goods and services and purchase over $500 billion of US products,” it said in another post.#IndiaUSJointStatement | India-US agmt reflects India’s commitment to safeguarding #farmers’ interests & sustaining rural livelihoods by completely protecting sensitive #agri & #dairy pdts, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain… pic.twitter.com/VDpa63mnl9

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Prime Minister Narendra Modi on Saturday said the interim trade agreement with the US will strengthen ‘Make in India’ by opening up new opportunities for farmers and entrepreneurs, and create jobs for women and youngsters.

The prime minister also thanked US President Donald Trump for his personal commitment to robust ties between India and the US.

“Great news for India and USA! We have agreed on a framework for an Interim Trade Agreement between our two great nations,” Modi said in a post on X.

He said this framework reflected the growing depth, trust and dynamism of the India-US partnership.

The India-US trade pact will open a USD 30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen, Commerce and Industry Minister Piyush Goyal said on Saturday.

He said the increase in exports will create lakhs of new job opportunities for the country’s women and youth.

“Under the decisive leadership of PM @NarendraModi ji, India has reached a framework for an Interim Agreement with the US. This will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen,” Goyal said in a social media post.

Even as India and the US issue a joint statement on the interim trade agreement, which would bring down the tariff on Indian exports to 18%, the US has left a window open for revision.

The Donald Trump administration had imposed a 25% additional tariff on Indian goods as a penalty for the South Asian country’s continued oil purchases from Russia, sanctioned by the West for invading Ukraine.Energy products, aircraft, aircraft parts, precious metals, tech goods, and coking coal — worth up to $500 billion over five years.

White House order makes removal of extra 25% tariff on Indian goods effective from 12:01 am EST on February 7.

The US will cut tariffs on India to 18% from 50% earlier, opening up a $30 trillion market for Indian exporters, especially small businesses, farmers, and fishermen. ()NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.