India and the United States announced a framework for an India-US interim trade deal. Ministers in New Delhi said the plan will lower tariffs, protect key farm sectors, and guide talks toward a broader bilateral trade agreement covering exports, jobs, and market access.
India-US interim trade deal discussions include a reciprocal tariff rate of 18 percent on Indian goods entering the US. Products covered include textiles, apparel, leather, footwear, plastics, rubber, organic chemicals, home décor, artisanal items, and certain machinery.
India will also reduce or remove tariffs on many US industrial goods and selected food and agricultural products. These include tree nuts, fruits, soybean oil, wine, spirits, and animal feed inputs such as dried distillers’ grains.
Boost exports and job creation through expanded market access
Commerce Minister Piyush Goyal said the India-US interim trade deal could open access to a USD 30 trillion market for Indian exporters. He said the framework may help MSMEs reach new buyers in the US and increase demand for Indian goods. Goyal added that farmers and fishermen could also gain from wider export opportunities.
Parliamentary Affairs Minister Kiren Rijiju echoed this view and said rising exports could create lakhs of job opportunities for women and youth. He noted that the agreement framework focuses on supporting domestic producers while strengthening trade ties with a key global partner. Union Minister Sarbananda Sonowal also welcomed the move and said reciprocal market access and tariff rationalisation could expand opportunities for Indian industries.
What changed in the India-US interim trade deal framework
The framework includes safeguards for domestic agriculture. Goyal said India protected dairy, grains, vegetables, and spices from tariff exposure. Listed items include milk products, wheat, rice, millet, frozen vegetables, turmeric, cumin, mustard, and other staples.
Finance Minister Nirmala Sitharaman said both countries remain committed to negotiating a wider US-India Bilateral Trade Agreement. A joint statement linked the roadmap to talks launched by Prime Minister Narendra Modi and US President Donald Trump in February 2025.
India also signalled plans to purchase USD 500 billion in US energy, aircraft parts, technology products, precious metals, and coking coal over five years. Both sides agreed to expand cooperation in technology trade, including data centre-related products.The India-US interim trade deal framework will now move toward finalisation as officials work on the next stage of the bilateral agreement.
