US-India Interim Trade Agreement Framework

The United States and India have announced a framework for an Interim Agreement on reciprocal and mutually beneficial trade, a significant step towards a broader Bilateral Trade Agreement (BTA) initiated in February 2025 by Donald Trump and Narendra Modi. Under this framework, India will eliminate or reduce tariffs on US industrial and agricultural goods, while the United States will apply an 18% reciprocal tariff on certain Indian goods, with plans to remove tariffs on a wide range of Indian exports like pharmaceuticals and aircraft parts upon successful conclusion of the Interim Agreement. India also intends to purchase $500 billion worth of US energy products, aircraft, precious metals, technology products, and coking coal over the next five years. The agreement also addresses non-tariff barriers, strengthens economic security alignment, and aims to boost digital trade and technology cooperation. Donald Trump also stated that India has committed to stop buying oil from Russia, linking this to the trade deal.