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Informist, Saturday, Feb. 7, 2026

 

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--Govt releases details of US-India interim trade agreement 
--US-India trade pact: India to eliminate or cut tariffs on many US agri pdts 
--US-India trade pact: India to eliminate tariffs on dried distillers' grains 
--US-India trade pact: US to impose tariff of 18% on some Indian exports 
--US-India trade pact: US to consider lowering tariffs further 
--US-India trade pact: India plans to buy $500 bln of US goods over 5 yrs 
--Minister Goyal:India-US trade pact to open $30 tln mkt for India exporters 
--Minister Goyal: Trade pact to help India-US deepen economic cooperation 
--Minister Goyal: Trade pact to protect sensitive agricultural, dairy pdts

 

MUMBAI – India and the US Saturday released a joint statement on the recently concluded trade deal under which the US has committed to cut reciprocal tariffs on Indian goods to 18%. The White House also issued an executive order to eliminate 25% penal tariff on India for New Delhi's strategic relations with Russia.

 

Washington had imposed a 50% tariff on Indian goods in August, which included 25% reciprocal tariff and 25% punitive tariff. Effectively, as per the joint statement and the executive order, the 50% has been cut to 18%. 

India's trade deal with the US will open $30 trillion market for Indian exporters, Union Minister of Commerce and Industry Piyush Goyal said in a post on the social media platform X. The minister said India has reached a framework for an interim agreement with the US.

 

According to the joint statement shared by Goyal on X, both sides will continue negotiations to expand the deal for a larger bilateral trade agreement. The US has affirmed it would consider India's request for lowering tariffs further, the statement said.

 

The announcement comes after nearly a year of talks marked by tariff tensions and strategic bargaining over market access and economic priorities. The interim framework reflects a "common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes," and will be promptly implemented as negotiations continue toward a full agreement, the statement said.

According to the joint statement, India has agreed to eliminate, or reduce, tariffs on a wide array of US industrial, food and agricultural products, including dried distillers' grains, tree nuts, fruits, soybean oil, wine and spirits. Washington has also agreed to remove tariffs on certain Indian aircraft parts and expand access through negotiated tariff-rate quotas for automotive parts and other sectors tied to US national security reviews.

 

Both sides have also committed to address non-tariff barriers, harmonising technical standards to ease compliance, and setting clear rules of origin to facilitate smoother trade flows. They pledged cooperation on digital trade, export controls, and investment screening regimes as part of the broader negotiating agenda. 

 

Goyal highlighted potential export gains in sectors such as textiles, apparel, leather, footwear, plastics, organic chemicals, home decor, artisanal goods and machinery if tariff reductions are fully realised. Goyal also said that India will fully protect "sensitive sectors" such as agriculture and dairy, saying the government's negotiations ensured that products like maize, wheat, rice, poultry, milk, and cheese remain shielded from sudden import shocks.

 

The joint statement further said India intends to purchase up to $500 billion in US goods over the next five years, including energy products, aircraft and parts, technology products such as GPUs and data-center components, precious metals and coking coal.

 

Both sides are currently working on drafting a formal agreement and are likely to sign it by mid-March, Goyal told media persons on Thursday. After signing this tranche, New Delhi and Washington will continue negotiations for a larger trade deal, under which India may get further duty concessions, Goyal had said.  End

 

US$1 = INR 90.66

 

Reported by J. Navya Sruthi and Kabir Sharma

Edited by Deepshikha Bhardwaj

 

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