NewzVille Desk
The United States and India have announced a framework for an Interim Agreement on reciprocal and mutually beneficial trade, marking a significant step toward advancing the broader US-India Bilateral Trade Agreement negotiations launched by President Donald Trump and Prime Minister Narendra Modi in February 2025 as part of this framework.
The United States will slash reciprocal tariffs on Indian goods to 18 percent, providing a huge market opportunity in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products, and select machinery in the world’s largest economy.
Additionally, tariffs will be reduced to zero on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts, thereby further enhancing India’s export competitiveness and the Make in India initiative.
India will also receive exemptions under Section 232 on aircraft parts, a tariff rate quota on auto parts, and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors.
At the same time, the Agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by fully protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, certain vegetables, meat, and more.
The two sides also agreed to significantly increase trade in technology products, including graphics processing units used in data centres, and to expand joint technology cooperation.
This agreement will also help India and the United States remain focused on working together to further deepen economic cooperation, reflecting a shared commitment to sustainable growth for people and businesses.
