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India and the United States have agreed on a framework for an interim trade agreement aimed at reducing tariffs, improving market access, and strengthening supply chains. India will lower duties on several U.S. industrial, food, and agricultural products, while the U.S. to impose 18% reciprocal tariffs.
India to Slash Duties on Key US Goods Under New Trade Framework
New Delhi: India and the United States have agreed on the framework of an interim trade agreement aimed at promoting reciprocal and balanced trade. This step is considered important for advancing the comprehensive Bilateral Trade Agreement (BTA) negotiations that began on February 13, 2025. Both countries have described it as a historic milestone in strengthening the economic partnership and making supply chains more resilient.
India-US trade deal follows 12 months of bonhomie and tense moments on tariffs, oil standoff
In an official joint statement issued early this morning, the government said that under the agreement, India will reduce or eliminate tariffs on a wide range of US industrial goods and food and agricultural products, including DDGS, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among others. This is expected to provide US exporters with better access to the Indian market.
India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional…
— Dynamite News (@DynamiteNews_) February 7, 2026
The United States will impose an 18% reciprocal tariff on Indian goods- such as textiles, leather and footwear, plastics and rubber, organic chemicals, home decor, and some machinery. However, following the successful conclusion of an interim agreement, these tariffs could be removed on a number of items, including generic medicines, gems and diamonds, and aircraft parts. There are also signs of some relief on national security-related tariffs, such as steel and aluminum.
The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended,…
— Dynamite News (@DynamiteNews_) February 7, 2026
India intends to purchase $500 billion of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 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, says India-US joint statement.
Both countries reiterated their commitment to work together on digital trade rules, investment protection, and supply chain resilience. Negotiations will continue toward finalizing a comprehensive bilateral trade agreement, with the interim agreement implemented soon.
Commerce and Industry Minister Piyush Goyal wrote on his X account, "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 opportunities for our 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. The increase in exports will create lakhs of new job… pic.twitter.com/xYSjxML6kt
— Piyush Goyal (@PiyushGoyal) February 7, 2026
"...This agreement will help India and the US remain focused on working together to further deepen economic cooperation, reflecting shared commitment to sustainable growth for our people and businesses. Towards realising Viksit Bharat !"
