Prime Minister Mr. Narendra Modi says framework for Interim Trade Agreement between India & US reflects growing depth, trust & dynamism between two countries
- IBEF
- February 9, 2026
India and the United States have announced an interim trade framework that represents a step toward deeper economic cooperation and wider market access between the world's two biggest democracies. The joint statement outlines an agreement to reduce tariffs to enhance bilateral trade and strengthen global supply chains, where the US would impose a reciprocal tariff rate of 18% on Indian exports from previously higher levels. In response, India will decrease or eliminate duties on a long list of US industrial, food, and farm products heaters, dried distiller's grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits are just a few examples. The framework signals a shared commitment to a balanced, mutually beneficial trading relationship, where both sides have further negotiations toward a full BTA. It also covers preferential market access, rules of origin, and cooperation to address non-tariff barriers in key sectors.
Prime Minister Mr. Narendra Modi termed the framework a positive development that will expand the opportunities for Indian farmers, entrepreneurs, MSMEs, and exporters by opening new markets and spurring innovation, jobs, and investment. India intends to purchase roughly Rs. 45.28 lakh crores (US$ 500 billion) worth of U.S. goods-energy products, aircraft, technology, and metals-over the next five years as part of a more comprehensive trade-and-investment initiative. Meanwhile, the protection of sensitive agricultural products is retained to take into consideration the various domestic misgivings and reassure different stakeholders that their interests are being taken care of. In sum, this interim framework will pave the way for deeper economic integration, stronger supply chains, and closer bilateral strategic ties.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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