EPCH Welcomes India-United States Trade Agreement Framework

New Delhi/NCR – 07th February’2026 – The Export Promotion Council for Handicrafts (EPCH) has welcomed the India-United States Joint Statement issued by the Ministry of Commerce & Industry, Government of India, announcing, the United States and India have reached a framework for an Interim Agreement on reciprocal and mutually beneficial trade, reaffirming commitment to the broader U.S.–India Bilateral Trade Agreement (BTA) negotiations that was launched on 13 February 2025. The framework, agreed under the leadership Prime Minister Narendra Modi, is a significant step towards expanding balanced market access, strengthening supply chain resilience, and deepening economic security alignment between India and the United States.

Welcoming the step, Dr. Neeraj Khanna, Chairman, EPCH , said, “The Interim Agreement framework is a landmark development towards a more structured and predictable trade engagement between the two countries. For our handicrafts sector, especially ‘home décor’ and ‘artisanal products’ specifically referenced in the framework will provide a greater clarity on tariffs, non-tariff barrier resolution and standards-related facilitation that can help exporters plan better, respond faster to buyers and build longer-term partnerships.

Dr Khanna further added that “the U.S. has traditionally been our largest market, contributing nearly 40% of total handicraft exports. At a time when tariff-related concerns had created uncertainty at levels as high as 50%, the Joint Statement now indicates that the U.S. will apply a reciprocal tariff rate of 18% on originating goods of India under its reciprocal tariff framework. Going forward, we will now work closely with our members to strengthen product positioning, enhance compliance readiness and expand market outreach so that ‘India Handmade’ continues to grow in a high-value, quality-conscious market like the USA.”

Echoing the similar sentiments, Dr. Rakesh Kumar, Director General in the role of Chief Mentor, EPCH and Chairman, IEML shared that “the framework recognises that competitiveness is shaped not only by tariffs, but also by non-tariff barriers, testing requirements, documentation and procedural predictability, areas that often create the real cost for MSMEs. With the Joint Statement committing to address non-tariff barriers, standards/conformity assessment discussions and rules of origin, the direction is clearly towards reduced friction and stronger supply-chain integration. Now, council will engage closely with stakeholders to understand product-specific implications as the Interim Agreement is finalized and will work together to ensure that handicrafts sector can effectively leverage the new framework and upcoming BTA outcomes.”

Sagar Mehta, Vice Chairman, EPCH , said that “the US market demands consistent quality, timely delivery and reliability. The reciprocal and balanced nature of the Interim Agreement sends a strong signal of mutual trust and shared economic priorities between India and the United States. As trade engagement deepens, exporters must respond with stronger readiness, packaging and labelling discipline, faster response cycles, production planning and fulfilment reliability. By aligning collections to evolving buyer expectations and upgrading business processes, India Handmade can scale responsibly and capture emerging opportunities in the US market.”

Rajesh Rawat, Executive Director, EPCH , shared that “We appreciate the Government of India’s continuous efforts in advancing Interim Agreement framework and reaffirming commitment to the wider Bilateral Trade Agreement (BTA) roadmap. The issued Joint Statement will focus on reducing trade friction through non-tariff barrier resolution, standards facilitation, and clearer rules of origin that can be particularly meaningful for handicraft MSMEs. EPCH will now accelerate exporter enablement through market intelligence, buyer mobilisation, compliance support and capacity-building initiatives so that this framework delivers practical outcomes in enquiries, repeat orders and long-term partnerships in the US market.”