Indore, Feb 10 (PTI) The interim trade agreement reached with the US after months of negotiations will significantly boost India's economy and provide "double benefits" to domestic entrepreneurs and exporters, Union Labour and Employment Minister Mansukh Mandaviya said on Tuesday.

India and the US announced last week they have reached a framework for an interim trade pact, under which both sides will reduce import duties on a number of goods to boost the two-way trade. Under the deal, Washington will bring down reciprocal tariff on Indian goods to 18 per cent from 25 per cent imposed last year.

"The trade deal with the US will significantly boost India's economy," Mandaviya told reporters in Indore.

He noted that despite the US imposing high tariffs on Indian goods before the two countries reached an agreement to reduce the duties, India's overseas shipments actually increased because domestic exporters used the situation as an opportunity and found new markets for their products.

The Labour and Employment Minister said, "Under the trade deal, the US has reduced tariffs on Indian goods. This has given our exporters access to the US market again." Mandaviya maintained the long-awaited trade agreement will bring "double benefits" to Indian entrepreneurs and exporters as they now have access to new markets in addition to the US.

Citing India's trade agreements with the European Union (EU) and the US, the minister said these deals now include social security cover for Indian workers employed abroad, which was not done during the tenures of previous governments.

Mandaviya praised the Union Budget for 2026-27 presented in the Lok Sabha on February 1, saying it has been prepared in line with the goal of making India a developed nation by 2047.

He emphasised that budget's provisions focused on overall development and will accelerate India's economic growth, generate employment, and strengthen infrastructure.

Regarding perception that Madhya Pradesh will receive less funding in the Union Budget compared to previous years, Mandaviya affirmed that in accordance with the government's fiscal discipline, each state has been provided with appropriate allocation.

The minister, who also holds the Youth and Sports Affairs portfolio, parried questions about Pakistan withdrawing its decision to boycott the T20 World Cup match against India scheduled in Colombo on February 15. PTI HWP MAS RSY

India-US trade deal cuts US tariffs to restore market access for Indian exporters and boost bilateral trade and exports. An interim India-US trade framework reduces US reciprocal tariffs on specified Indian goods from 25 per cent to 18 per cent to restore and expand market access for Indian exporters, promote export diversification, and stimulate bilateral trade. The statement connects the trade measure to broader external agreements that now include social security coverage for Indian workers abroad and to the Union Budget 2026 27, which is presented as aligned with a long term development strategy, fiscal discipline, and allocations intended to support growth, employment, and infrastructure.