US and India Reach Framework for Interim Trade Agreement, Reaffirm BTA Talks
09 February 2026, Washington: The United States of America and India have announced that they have reached a framework for an Interim Agreement on reciprocal and mutually beneficial trade, marking a significant step forward in bilateral economic relations.
The framework reaffirms both countries’ commitment to the broader U.S.–India Bilateral Trade Agreement (BTA) negotiations, launched by Donald J. Trump and Narendra Modi on February 13, 2025. The BTA negotiations aim to expand market access, address long-standing trade barriers, and strengthen supply chain resilience between the two economies.
According to the joint announcement, the Interim Agreement is intended to serve as a milestone toward a more comprehensive trade framework based on reciprocal commitments and balanced outcomes.
Market Access Commitments by India
Under the Interim Agreement framework, India will eliminate or reduce tariffs on all U.S. industrial goods and a broad range of U.S. food and agricultural products.
Key U.S. Agricultural and Food Products Gaining Improved Access to India
| Product category | Scope of tariff action |
|---|---|
| Dried distillers’ grains (DDGs) | Tariff elimination or reduction |
| Red sorghum (animal feed) | Tariff elimination or reduction |
| Tree nuts | Tariff elimination or reduction |
| Fresh and processed fruits | Tariff elimination or reduction |
| Soybean oil | Tariff elimination or reduction |
| Wine and spirits | Tariff elimination or reduction |
| Other agricultural products | Tariff elimination or reduction |
These measures are expected to improve competitiveness for U.S. agricultural exporters in the Indian market.
US Tariff Commitments and Reciprocal Measures
The United States will apply a reciprocal tariff rate of 18 percent on originating goods of India under Executive Order 14257 (April 2, 2025), which addresses large and persistent U.S. goods trade deficits.
However, subject to the successful conclusion of the Interim Agreement, the U.S. will remove reciprocal tariffs on a wide range of Indian goods identified in the Potential Tariff Adjustments for Aligned Partners Annex under Executive Order 14346 (September 5, 2025).
Indian Goods Covered Under Reciprocal Tariff Framework
| Sector | Tariff status |
|---|---|
| Textiles and apparel | 18% reciprocal tariff (subject to removal) |
| Leather and footwear | 18% reciprocal tariff (subject to removal) |
| Plastic and rubber products | 18% reciprocal tariff (subject to removal) |
| Organic chemicals | 18% reciprocal tariff (subject to removal) |
| Home décor and artisanal products | 18% reciprocal tariff (subject to removal) |
| Certain machinery | 18% reciprocal tariff (subject to removal) |
| Generic pharmaceuticals | Eligible for tariff removal |
| Gems and diamonds | Eligible for tariff removal |
| Aircraft parts | Eligible for tariff removal |
Aircraft, Metals, and Automotive Parts
The United States will also remove tariffs on certain aircraft and aircraft parts from India that were imposed under national security-related proclamations covering aluminum, steel, and copper imports.
In parallel, India will receive a preferential tariff-rate quota for automotive parts subject to tariffs imposed under U.S. national security provisions related to automobiles and auto components.
Pharmaceuticals and Section 232 Review
Outcomes related to generic pharmaceuticals and pharmaceutical ingredients will be contingent on the findings of the ongoing U.S. Section 232 investigation into the sector. India is expected to receive negotiated outcomes following the conclusion of this review.
Non-Tariff Barriers and Rules of Origin
Both countries have committed to providing preferential market access in sectors of mutual interest on a sustained basis.The framework will also establish rules of origin to ensure that benefits of the agreement accrue primarily to the U.S. and India and also address non-tariff barriers affecting bilateral trade.
As part of this process, India has agreed to address long-standing barriers in trade related to U.S. medical devices.
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