On February 7, 2026, the Government of India confirmed that India and the United States of America had reached a framework for an Interim Trade Agreement aimed at reciprocal and mutually beneficial trade. The announcement was issued through the Press Information Bureau of the Government of India and was followed by a detailed joint statement released by both governments.
Narendra Modi welcomed the framework and described it as positive news for both countries. The Prime Minister stated that the agreement reflected the growing depth, trust, and dynamism of the India–United States partnership. He acknowledged the personal commitment of Donald Trump to strengthening bilateral ties and said the framework would contribute to strengthening India’s domestic manufacturing and employment objectives.
The Prime Minister’s remarks were issued in response to a public communication by Piyush Goyal, Union Minister of Commerce and Industry, who had posted about the interim agreement on the social media platform X.
How the interim trade framework aligns with broader United States–India trade negotiations
According to the joint statement issued by the United States and India, the interim framework reaffirms both countries’ commitment to the broader United States–India Bilateral Trade Agreement negotiations. These negotiations were formally launched on February 13, 2025, following discussions between President Donald Trump and Prime Minister Narendra Modi.
The framework is positioned as an intermediate step toward a comprehensive Bilateral Trade Agreement. Both governments described the interim framework as a historic milestone that demonstrates a shared commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes. The statement confirmed that additional market access commitments and supply chain resilience measures would be pursued through the ongoing Bilateral Trade Agreement negotiations.
What tariff commitments India has made under the interim trade framework
Under the framework, India committed to eliminating or reducing tariffs on all United States industrial goods and on a wide range of United States food and agricultural products. The products listed in the joint statement include dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine, spirits, and additional agricultural and food items.
The agreement specifies that these tariff adjustments are intended to improve market access for United States exports into India and address long standing trade concerns raised by the United States government in previous bilateral discussions.
What tariff measures the United States will apply to Indian exports under the framework
The United States confirmed that it will apply a reciprocal tariff rate of 18 percent on originating goods of India under Executive Order 14257 of April 2, 2025, which regulates imports to address persistent United States goods trade deficits. The affected Indian exports include textile and apparel products, leather and footwear, plastic and rubber goods, organic chemicals, home décor items, artisanal products, and certain machinery.
The joint statement further clarified that, subject to the successful conclusion of the Interim Trade Agreement, the United States will remove the reciprocal tariff on a wide range of Indian goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025. These goods include generic pharmaceuticals, gems and diamonds, and aircraft parts.
How national security tariffs and quotas are addressed in the interim agreement
The United States confirmed that it will remove tariffs on certain aircraft and aircraft parts of India that were previously imposed under national security determinations. These measures had been introduced under Proclamation 9704 and Proclamation 9705 of March 8, 2018, relating to aluminum and steel imports, and under Proclamation 10962 of July 30, 2025, relating to copper imports.
In parallel, India will receive a preferential tariff rate quota for automotive parts that are subject to tariffs imposed under Proclamation 9888 of May 17, 2019, which addressed imports of automobiles and automobile parts on national security grounds. The joint statement clarified that these concessions are consistent with United States national security requirements.
The framework also noted that outcomes related to generic pharmaceuticals and pharmaceutical ingredients will be contingent on the findings of the United States Section 232 investigation into pharmaceuticals and pharmaceutical inputs.
How the framework addresses non tariff barriers and regulatory alignment
Both governments agreed to address non tariff barriers that affect bilateral trade. India committed to addressing long standing barriers to trade in United States medical devices. India also agreed to eliminate restrictive import licensing procedures that delay market access or impose quantitative restrictions on United States Information and Communication Technology goods.
The joint statement specified that India will determine, within six months of the agreement’s entry into force, whether United States developed or international standards and testing requirements are acceptable for United States exports entering the Indian market in identified sectors. India also agreed to address non tariff barriers affecting United States food and agricultural products.
To improve regulatory cooperation, both countries stated their intention to discuss standards and conformity assessment procedures for mutually agreed sectors, with the objective of enhancing ease of compliance with technical regulations.
What rules of origin and safeguard mechanisms are included in the agreement
The interim framework includes provisions to establish rules of origin to ensure that the benefits of the agreement accrue predominantly to India and the United States. The joint statement emphasized that these rules are intended to prevent diversion of benefits to third countries.
The agreement also includes a safeguard mechanism under which either country may modify its commitments if the other country changes its agreed tariffs. This provision is intended to maintain balance and reciprocity within the framework.
How the agreement addresses investment, technology, and supply chain security
Both governments committed to strengthening economic security alignment to enhance supply chain resilience and innovation. The framework includes cooperation on inbound and outbound investment reviews and export controls. The joint statement noted that India and the United States will work together to address non market policies of third parties that affect supply chains.
The agreement also outlines plans to expand trade in technology products, including Graphics Processing Units and other goods used in data centers. Both countries committed to expanding joint technology cooperation and innovation partnerships.
What India’s planned purchases from the United States include under the framework
India stated its intention to purchase 500 billion United States dollars worth of United States energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years. This commitment was highlighted as a central component of the framework and as a driver of increased bilateral trade volumes.
How digital trade and future negotiations are addressed
The United States and India committed to addressing discriminatory or burdensome practices that affect digital trade. The framework sets a pathway toward establishing robust and mutually beneficial digital trade rules as part of the broader Bilateral Trade Agreement negotiations.
The joint statement confirmed that both governments will promptly implement the framework and work toward finalizing the Interim Trade Agreement, with the objective of concluding a comprehensive Bilateral Trade Agreement consistent with the agreed roadmap and terms of reference.
How India’s leadership framed the agreement in domestic and global terms
Prime Minister Narendra Modi stated that the framework would strengthen the Make in India initiative by opening new opportunities for farmers, entrepreneurs, micro, small, and medium enterprises, startup innovators, and fishermen. He said the framework would generate large scale employment opportunities for women and youth.
The Prime Minister further stated that the agreement would deepen investment and technology partnerships, strengthen resilient and trusted supply chains, and contribute to global growth. He reaffirmed India’s vision of building a Viksit Bharat and said India remains committed to future oriented global partnerships that empower people and promote shared prosperity.
Key takeaways on what the India–United States interim trade framework means for bilateral trade and global economic alignment
- India and the United States have agreed on a framework for an Interim Trade Agreement that reaffirms their commitment to concluding a comprehensive Bilateral Trade Agreement.
- India will reduce or eliminate tariffs on United States industrial and agricultural goods, while the United States will apply reciprocal tariffs with defined pathways for tariff removal on selected Indian exports.
- The framework addresses national security tariffs, non tariff barriers, regulatory cooperation, and rules of origin to strengthen reciprocal market access.
- Both governments committed to expanding technology trade, strengthening supply chain resilience, and aligning economic security policies.
- India announced plans to purchase 500 billion United States dollars worth of United States goods over five years, reinforcing the scale of the bilateral economic partnership.
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