India-USA Agree on Framework for Interim Trade AgreementOn February 7, 2026, India and the United States of America (USA) agreed on a framework for an Interim Trade Agreement(ITA), marking a significant step towards a full USA-India Bilateral Trade Agreement (BTA).
Key Elements of the Framework for India-USA Interim Trade Agreement:
Tariff Reduction: India will reduce or remove tariffs on all industrial goods and many agricultural and food products, including Animal feed such as Distillers’ Dried Grains (DDGs), Red Sorghum, tree nuts, fruits (fresh and processed), soybean oil, and wine and spirits, from the USA.
USA’s Reciprocal Tariffs: USA will impose an 18% reciprocal tariff 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) on Indian exports such as textiles and apparel, leather and footwear, plastics and rubber, chemicals, handicrafts, home decor, and some machineries.
Aircraft & Auto parts: The USA will remove security-related tariffs on Indian aircraft and aircraft parts, grant preferential access (quota-based) for auto parts exports, and determine outcomes for pharmaceuticals based on the findings of national security review of the USA.
India’s Trade Purchases: India plans to buy USD 500 billion worth products over 5 years from the USA, including energy products, aircraft and parts, technology products, precious metals, and coking coal.
Digital Trade: Trade in advanced technology products, including Graphics Processing Units (GPUs) and data-center equipment, will be expanded.
About United States of America (USA):
President – Donald John (J) Trump
Capital – Washington D.C.
Currency – United States Dollar (USD)
Key Elements of the Framework for India-USA Interim Trade Agreement:
Tariff Reduction: India will reduce or remove tariffs on all industrial goods and many agricultural and food products, including Animal feed such as Distillers’ Dried Grains (DDGs), Red Sorghum, tree nuts, fruits (fresh and processed), soybean oil, and wine and spirits, from the USA.
USA’s Reciprocal Tariffs: USA will impose an 18% reciprocal tariff 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) on Indian exports such as textiles and apparel, leather and footwear, plastics and rubber, chemicals, handicrafts, home decor, and some machineries.
Aircraft & Auto parts: The USA will remove security-related tariffs on Indian aircraft and aircraft parts, grant preferential access (quota-based) for auto parts exports, and determine outcomes for pharmaceuticals based on the findings of national security review of the USA.
India’s Trade Purchases: India plans to buy USD 500 billion worth products over 5 years from the USA, including energy products, aircraft and parts, technology products, precious metals, and coking coal.
Digital Trade: Trade in advanced technology products, including Graphics Processing Units (GPUs) and data-center equipment, will be expanded.
About United States of America (USA):
President – Donald John (J) Trump
Capital – Washington D.C.
Currency – United States Dollar (USD)
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