India and the US have issued a joint statement announcing the signing of an interim trade agreement. It is being described as a solid foundation for future bilateral trade. While India has agreed to reduce tariffs on US products, the US has reduced tariffs on Indian goods to 18 percent.
The United States and India have issued a joint statement on the Interim Trade Agreement. Both countries have described the agreement as a significant step towards strengthening future bilateral trade ( Bilateral Trade Agreement – BTA) negotiations. The interim agreement is a continuation of the trade talks that US President Donald Trump and Prime Minister Narendra Modi launched on February 13, 2025. The joint statement said that the agreement is designed to develop an equal and balanced trade relationship based on mutual interest.
A copy of the joint statement was shared by Union Commerce and Industry Minister Piyush Goyal on his X handle. Under the decisive leadership of Prime Minister Narendra Modi, India has reached an interim agreement with the US. This will open up a $30 trillion market for Indian exporters, especially medium and small industries, farmers and fishermen. Increased exports will create millions of new job opportunities for our women and youth, Piyush Goyal said.
Piyush Goyal X Message
Tariff reduction for American products
Under the interim trade agreement, India has agreed to reduce or eliminate tariffs on US industrial goods and facilitate access to the Indian market for a number of agricultural products, including animal feed, nuts, fruits, soybean oil, and wine, the joint statement said.
Import duty on Indian products reduced to 18%
The US has reduced import duties on goods from India to 18 percent. The agreement mentions a plan to phase out tariffs on many items including textiles, leather, footwear, machinery, gems and diamonds, and generic medicines after the agreement is finalized.
Boost for aviation, auto, pharmaceutical sectors
The US has agreed to provide special tariff exemptions for Indian aircraft spare parts and automobile parts. Talks will also continue to increase cooperation in the field of generic medicines.
Agreed to reduce import restrictions
India has agreed to reduce import restrictions on medical devices and information and communication technology (ICT) items. The two countries will work to remove long-standing barriers to trade in agricultural and food products.
It has been decided to implement ‘Rules of Origin’ so that the benefits of the agreement reach both India and the US. The agreement also emphasizes removing barriers in digital trade and creating secure and transparent rules, the joint statement said.
Plan to buy $500 billion from America
The trade agreement proposes that India intends to buy $500 billion worth of fuel, aircraft and their parts, precious metals, technology products and coal from the US over the next five years. It also plans to increase trade in technology goods, including GPUs needed for data centers.
Supply chain, investment cooperation
The two countries have decided to work together to strengthen supply chains, expand investment and technology partnerships, and boost global economic growth.
The joint statement said that India and the US will move forward towards finalizing a mutually beneficial bilateral trade agreement by implementing this interim agreement expeditiously.
