The United States and India on Friday released a framework for an interim trade agreement, where the government has agreed to eliminate or reduce duties on wide range of duties on US goods including farm products
Joint statement describes the interim agreement as an important step that keeps negotiations on track while both sides work toward a wider and more detailed trade pact.
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. The increase in exports will create lakhs of new job… pic.twitter.com/xYSjxML6kt
— Piyush Goyal (@PiyushGoyal) February 7, 2026
What India will Offer under the deal
In the official statement, the two countries said they were “pleased to announce” that they had reached a framework for an Interim Agreement focused on “reciprocal and mutually beneficial trade.” Under the framework, India has agreed to cut or fully remove tariffs on all US industrial goods. It will also lower duties on a wide range of American food and farm products.
These include dried distillers’ grains used for animal feed, red sorghum, tree nuts, fresh and processed fruits, soybean oil, wine, spirits and several other products. The move is aimed at giving US exporters easier access to the Indian market.
India has also agreed to address long-standing issues that have slowed down or restricted US exports, especially in sectors like medical devices, food products and technology goods.
What the United States Is offering in return
On its part, the United States will apply a reciprocal tariff rate of 18 per cent on Indian goods under an executive order issued in April 2025. These tariffs will apply to products such as textiles and apparel, leather and footwear, plastic and rubber items, organic chemicals, home décor, handicrafts and certain machinery.
However, the US has also said that once the Interim Agreement is successfully concluded, it will remove reciprocal tariffs on a wide range of Indian goods. These include generic medicines, gems and diamonds, and aircraft parts.
The United States will also remove tariffs on certain aircraft and aircraft parts from India that were earlier imposed on national security grounds under steel, aluminium and copper-related proclamations.
India will also receive preferential treatment in some sensitive sectors. The US said India will get a preferential tariff quota for automotive parts, subject to national security requirements. “The United States and India commit to provide each other preferential market access in sectors of respective interest on a sustained basis,” the White House statement said.
In pharmaceuticals, India is expected to receive negotiated outcomes on generic drugs and ingredients, depending on the findings of a US investigation under Section 232.
Tackling non-tariff barriers
A major part of the framework focuses on non-tariff barriers that have long affected trade between the two countries. India has agreed to address concerns related to US medical devices and to remove restrictive import licensing rules that delay or limit access for US information and communication technology products.
India has also committed to decide, within six months of the agreement coming into force, whether US-developed or international standards can be accepted for exports into India in certain sectors. This includes reviewing testing and certification requirements.
Both countries said they would work together to improve coordination on standards and conformity checks to make compliance easier for businesses. “Recognising the importance of working together to resolve long-standing concerns, India also agrees to address long-standing non-tariff barriers to the trade in US food and agricultural products,” the statement said.
The framework allows flexibility if either country changes its tariff structure in the future. In such cases, the other country will be allowed to adjust its commitments as well.
The two sides also agreed to set clear rules of origin so that the benefits of the agreement mainly go to the United States and India, and not third countries.
One of the biggest takeaways from the framework is India’s plan to significantly increase purchases from the United States. India said it intends to buy $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years. “India and the United States will significantly increase trade in technology products, including Graphics Processing Units (GPUs) and other goods used in data centers, and expand joint technology cooperation,” the statement said. “The United States and India commit to address discriminatory or burdensome practices and other barriers to digital trade and to set a clear pathway to achieve robust, ambitious, and mutually beneficial digital trade rules as part of the BTA,” it added.