India–US interim trade deal framework: 10 key takeaways. Read the full statement

Here are the main takeaways from the statement:

Framework for an interim deal agreed

The US and India have reached a framework for an Interim Agreement focused on reciprocal and mutually beneficial trade, marking a step towards a full trade pact.

Commitment to a full trade agreement

• The United States and India have reached a framework for an Interim Agreement on reciprocal and mutually beneficial trade.
• The agreement reaffirms commitment to broader US-India Bilateral Trade Agreement (BTA) negotiations launched in February 2025.

India’s Commitments:

• Eliminate or reduce tariffs on all US industrial goods.
• Reduce tariffs on US food and agricultural products, including dried distillers’ grains, red sorghum, tree nuts, fresh and processed fruit, soybean oil, wine, and spirits.
• Address non-tariff barriers to US medical devices, ICT goods, and food and agricultural products.

India to cut tariffs on US goods

India will eliminate or reduce tariffs on all US industrial goods and a broad range of US agricultural and food products, including animal feed, nuts, fruit, soybean oil, wine and spirits.

US to apply 18% reciprocal tariff

The United States will apply a reciprocal tariff rate of 18% on many Indian goods, including textiles, clothing, leather, footwear, plastics, chemicals and certain machinery, under existing executive orders.

US Commitments:

• Remove tariffs on certain aircraft and aircraft parts, generic pharmaceuticals, gems, and diamonds.
• Provide preferential market access to India in sectors of respective interest.

Tariffs removed on selected Indian exports

Subject to the interim deal being finalised, the US will remove tariffs on a range of Indian goods, including generic pharmaceuticals, gems and diamonds, and some aircraft and aircraft parts.

India will receive the same tariff treatment as other US allies on certain aircraft and aircraft parts. It will also get a quota for auto parts that can be imported at a lower tariff rate.

On pharmaceuticals, the statement said India would receive “negotiated outcomes” on generic drugs and ingredients, depending on the results of a separate US tariff investigation into the sector.

Relief under national security tariffs

The US will also lift certain tariffs on Indian aircraft and aircraft parts imposed under national security laws. India, in return, will receive a preferential quota with lower tariffs for some auto parts.

India also agreed to eliminate or cut tariffs on all US industrial goods and on a wide range of US agricultural and food products. These include animal feed such as dried distillers’ grains and red sorghum, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.

Preferential market access on both sides

Both countries agreed to provide each other sustained preferential market access in sectors of mutual interest and to ensure rules of origin that mainly benefit US and Indian producers.

Non-tariff barriers to be addressed

India agreed to tackle long-standing non-tariff barriers affecting US medical devices, ICT goods and agricultural products, including import licensing delays and standards issues. Talks on accepting US or international standards are to be concluded within six months.

Trade, technology and supply chains

India plans to buy $500 billion worth of US goods over five years, including energy products, aircraft, precious metals, technology products and coking coal. Both sides will expand trade in technology items such as GPUs and deepen cooperation on innovation, supply chains and economic security, including addressing non-market practices of third countries.

Next steps and digital trade

The two countries said they would promptly implement the framework and work towards finalising the Interim Agreement, with the aim of concluding a full BTA. They also committed to addressing barriers to digital trade and setting a clear path towards strong and mutually beneficial digital trade rules.

Together, the framework signals renewed momentum in India–US trade relations, with both sides aiming to lock in early benefits while pushing ahead towards a comprehensive agreement.

The two countries have struggled for years to finalise a full trade deal, with disputes over agriculture, digital trade and market access. Officials say strategic concerns, including competition with China, supply chain shifts and energy security, have now given talks fresh momentum.