The United States and India on Friday (February 6, 2026) released the framework for an interim trade agreement. This agreement will accelerate progress towards a larger and more permanent bilateral trade agreement between the two countries. The move is seen as strengthening economic ties between the two countries amid recent tensions over tariffs. A joint statement said that India and the US will soon implement this framework and will work together to finalize the interim agreement. The goal is to create a trade agreement that benefits both countries equally. This has been described as an important achievement for the India-US partnership.
Trump removed 25 percent additional tariff
According to a Reuters report, before this framework, US President Donald Trump had announced that the US was removing 25 percent additional tariff imposed on Indian goods. Trump implemented this decision by signing an executive order. This tariff was imposed due to India buying Russian oil. Trump claimed that India will reduce its trade barriers and increase purchases of oil and other products from the US. However, India has maintained a balanced approach with respect to energy security.
Indian exporters get access to $30 trillion US market
Union Commerce Minister Piyush Goyal described this framework as the result of the leadership of Prime Minister Narendra Modi. He said the agreement will open doors for Indian exporters, especially MSMEs, farmers and fishermen, to the huge US market, which is a $30 trillion economy. This will boost exports and create millions of new employment opportunities for women and youth. According to Piyush Goyal, under this framework, the US will reduce the reciprocal tariff on Indian products to 18 percent. This will greatly benefit sectors like textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, handicrafts and select machinery in the US market. Tariffs on many Indian products were reduced to zero, giving a boost to the Make in India initiative
Under this interim agreement, the US has agreed to completely eliminate tariffs on several Indian products, including generic pharmaceuticals, gems and jewellery, and aircraft parts. This will strengthen India’s export competitiveness and directly benefit the Make in India initiative.
Interests of farmers and dairy sector were fully protected
Piyush Goyal clarified that this agreement does not compromise the interests of Indian farmers and rural livelihoods. Sensitive agricultural and dairy products like corn, wheat, rice, soybean, poultry, milk, cheese, ethanol, tobacco, some vegetables and meat have been completely protected.
