India–US Announce Interim Trade Framework

On 7th February 2026, India and the United States announced a framework for an Interim Trade Agreement, marking a significant step in bilateral economic engagement and reinforcing their commitment to finalising a comprehensive Bilateral Trade Agreement.

Key Points

Framework Announcement: The Interim Trade Agreement framework was jointly announced by India and the United States, building on negotiations initiated by Donald Trump and Narendra Modi on 13 February 2025.
Tariff Commitments by India: India has agreed to eliminate or reduce tariffs on US industrial goods and a wide range of agricultural products including animal feed, fruits, nuts, soybean oil, wine and spirits.
US Tariff Adjustments: The United States will apply a reciprocal tariff rate of 18 per cent on Indian-origin goods, with provisions to remove tariffs on several products once the Interim Agreement is fully concluded.
Sector-Specific Concessions: The US will remove tariffs on certain Indian aircraft and aircraft parts, while India will receive preferential tariff treatment for automotive parts, subject to US national security requirements.
Pharmaceutical Market Access: Negotiated outcomes have been proposed for Indian generic pharmaceuticals and pharmaceutical ingredients, depending on findings of a US review.
Rules of Origin: Both countries agreed to establish rules of origin to ensure that the benefits of the agreement are primarily limited to India and the United States.
Addressing Non-Tariff Barriers: India has agreed to address long-standing concerns related to US medical devices, streamline import licensing for ICT products and review testing and standards procedures.