The United States and India unveiled a new trade framework that advances talks toward a broader bilateral deal. Leaders framed the interim pact as a step toward balanced trade, resilient supply chains, and expanded market access.
The framework follows negotiations launched by President Donald J. Trump and Prime Minister Narendra Modi on Feb. 13, 2025.
The White House reports both governments plan to finalize an interim agreement while pushing toward a comprehensive pact.
Tariff Changes And Market Access
India agreed to cut or remove duties on U.S. industrial goods and many farm products. Covered items include animal feed inputs, tree nuts, fruits, soybean oil, wine, and spirits.
The United States set a reciprocal tariff rate of 18% on Indian-origin goods under an existing executive order.
The rate initially applies to textiles, apparel, chemicals, plastics, leather, footwear, décor, artisanal goods, and machinery.
Conditional Tariff Relief
Washington pledged to remove reciprocal duties on several categories after successful implementation.
Those categories include generic medicines, gems, diamonds, and aircraft components.
The United States also plans to lift certain security-based tariffs on Indian aircraft parts. Those removals reference earlier proclamations covering aluminum, steel, and copper imports.
India will receive a preferential tariff-rate quota for automotive components. That relief remains subject to U.S. national security requirements.
Pharmaceutical outcomes depend on a pending Section 232 investigation. Officials said negotiations would address generic medicines and key ingredients if findings allow.
Non-Tariff Barriers And Standards
India committed to easing long-standing barriers affecting U.S. medical devices and technology imports. The country also plans to review testing standards for U.S. exports within six months.
Both sides agreed to discuss standards and conformity procedures. Officials said those talks aim to simplify compliance across agreed sectors.
The countries pledged to confront discriminatory digital practices. Negotiators also set a pathway toward binding digital trade rules within the broader agreement.
Officials highlighted cooperation on investment reviews, export controls, and supply chain security. The framework targets non-market practices by third countries.
India plans to buy $500 billion in U.S. energy, aircraft, metals, technology, and coking coal over five years. The plan also expands technology trade, including GPUs for data centers.
Per a CNBC report, India is ready to place up to $80 billion in Boeing aircraft orders, Commerce Minister Piyush Goyal reportedly said.
He added engines and spares could push U.S. aircraft-related imports past $100 billion.
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