India-US Interim Framework Aims to Boost MSME Participation in Global Value Chains: FM

The interim framework reached between India and the United States is expected to play a significant role in strengthening economic cooperation between the two countries by enabling Indian micro, small and medium enterprises (MSMEs) to integrate more effectively into global value chains, Finance Minister Nirmala Sitharaman said on Saturday.

The framework is aimed at reducing trade barriers, improving market access, and lowering operational costs for businesses, which could ultimately benefit consumers through more competitive pricing. Announced late Friday, the agreement outlines mutual commitments to reduce import duties on selected goods in order to boost two-way trade and enhance supply chain linkages.

As part of the arrangement, the United States will lower tariffs on certain Indian exports to 18 per cent from the existing 50 per cent, a move expected to improve the competitiveness of Indian products in the US market.

In return, India has agreed to eliminate or substantially cut import duties on US industrial products along with a wide range of food and agricultural items, including animal feed inputs, nuts, fresh and processed fruits, edible oils, and alcoholic beverages.

The finance minister noted that these measures are designed to create a more balanced and efficient trade environment, encourage investment, and provide new growth opportunities for MSMEs by connecting them with global markets and supply networks.