**Executive Summary**
This joint statement, issued on February 7, 2026, announces the framework for an Interim Agreement between the United States and India regarding reciprocal and mutually beneficial trade, to be followed by a broader Bilateral Trade Agreement (BTA). The interim agreement demonstrates a commitment to reciprocal and balanced trade based on mutual interests. The goal is to promptly implement the framework and finalise the Interim Agreement.
**Key Points / Main Content**
* **Tariff Reductions and Removals:**
* India will reduce or eliminate tariffs on a wide range of U.S. industrial, food, and agricultural products.
* The United States will apply an 18% reciprocal tariff rate on originating goods from India and remove tariffs on identified goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts, subject to the successful conclusion of the Interim Agreement.
* The United States will also remove tariffs on certain aircraft and aircraft parts from India and provide a preferential tariff rate quota for automotive parts.
* **Trade Practices and Market Access:**
* Both countries commit to providing preferential market access in sectors of respective interest.
* The United States and India will establish rules of origin to ensure the agreement benefits their respective economies.
* India agrees to address non-tariff barriers affecting bilateral trade, including those related to U.S. medical devices and ICT goods.
* The United States and India intend to discuss their respective standards and conformity assessment procedures for mutually agreed sectors.
* **Bilateral Trade Agreement (BTA) Negotiations:**
* The United States and India will work towards expanding market access opportunities through BTA negotiations.
* The United States will consider India's request to continue lowering tariffs on Indian goods during BTA negotiations.
* **Economic Security and Supply Chain Resilience:**
* The United States and India agree to strengthen economic security alignment and supply chain resilience.
* **Investment and Trade Commitments:**
* India intends to purchase $500 billion of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 years.
* **Digital Trade:**
* The United States and India commit to addressing barriers to digital trade and establishing mutually beneficial digital trade rules as part of the BTA.
**Impact Analysis**
**United States:**
* **Impact:** Will benefit from increased market access in India for its industrial, food, and agricultural products.
* **Action Required:** Implement the tariff reductions and removals outlined in the agreement.
**India:**
* **Impact:** Gains reciprocal tariff rates from the United States and increased market access.
* **Action Required:** Eliminate or reduce tariffs on the specified U.S. products.
**U.S. Businesses:**
* **Impact:** Increased export opportunities to India.
* **Action Required:** Explore opportunities to export more goods to India, particularly in the industrial, food, agricultural, medical devices, and ICT sectors.
**Indian Businesses:**
* **Impact:** Gains preferential market access to the United States and will enable Indian businesses to expand their reach in the U.S. market.
* **Action Required:** Take advantage of increased market access opportunities in the United States, particularly in textile, apparel, leather, footwear, and organic chemicals sectors.
**Consumers in Both Countries:**
* **Impact:** May experience changes in the prices and availability of goods due to tariff adjustments.
* **Action Required:** Monitor changes in the market and adjust purchasing decisions accordingly.
Key Entities Referenced
U.S.-India Bilateral Trade Agreement (BTA): The broader trade negotiations between the United States and India that the Interim Agreement is intended to support and advance.
Interim Agreement: A framework for reciprocal and mutually beneficial trade between the United States and India, aiming to reduce tariffs and address non-tariff barriers.
Executive Order 14257: U.S. executive order regarding reciprocal tariffs to rectify trade practices contributing to trade deficits, under which the United States will apply an 18% tariff rate to originating goods from India.
United States: One of the two primary parties involved in the trade agreement. Actions and commitments made by this country are central to the policy.
India: One of the two primary parties involved in the trade agreement. Actions and commitments made by this country are central to the policy.
Ministry of Commerce & Industry
UNITED STATES-INDIA JOINT STATEMENT
Posted On: 07 FEB 2026 4:29AM by PIB Delhi
The United States of America (United States) and India are pleased to announce that they have reached
a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim
Agreement). Today’s framework reaffirms the countries’ commitment to the broader U.S.-India
Bilateral Trade Agreement (BTA) negotiations, launched by President Donald J. Trump and Prime
Minister Narendra Modi on February 13, 2025, which will include additional market access
commitments and support more resilient supply chains. The Interim Agreement between the United
States and India will represent a historic milestone in our countries’ partnership, demonstrating a
common commitment to reciprocal and balanced trade based on mutual interests and concrete
outcomes.
Key terms of the Interim Agreement between the United States and India will include:
India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and
agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree
nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of
April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices That
Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended, on
originating goods of India, including textile and apparel, leather and footwear, plastic and rubber,
organic chemicals, home décor, artisanal products, and certain machinery, and, subject to the
successful conclusion of the Interim Agreement, will remove the reciprocal tariff on a wide range of
goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order
14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing
Procedures for Implementing Trade and Security Agreements), as amended, including generic
pharmaceuticals, gems and diamonds, and aircraft parts.
The United States will also remove tariffs on certain aircraft and aircraft parts of India imposed to
eliminate threats to national security found in Proclamation 9704 of March 8, 2018 (Adjusting
Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018
(Adjusting Imports of Steel Into the United States), as amended; and Proclamation 10962 of July 30,
2025 (Adjusting Imports of Copper Into the United States). Similarly, consistent with U.S. national
security requirements, India will receive a preferential tariff rate quota for automotive parts subject
to the tariff imposed to eliminate threats to national security found in Proclamation 9888 of May 17,
2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended.
Contingent on the findings of the U.S. Section 232 investigation of pharmaceuticals and
pharmaceutical ingredients, India will receive negotiated outcomes with respect to generic
pharmaceuticals and ingredients.
The United States and India commit to provide each other preferential market access in sectors of
respective interest on a sustained basis.The United States and India will establish rules of origin that ensure that the benefits of the
Agreement accrue predominately to the United States and India.
The United States and India will address non-tariff barriers that affect bilateral trade. India agrees to
address long-standing barriers to the trade in U.S. medical devices; eliminate restrictive import
licensing procedures that delay market access for, or impose quantitative restrictions on, U.S.
Information and Communication Technology (ICT) goods; and determine, with a view towards a
positive outcome, within six months of entry into force of the Agreement whether U.S.-developed or
international standards, including testing requirements, are acceptable for the purposes of U.S.
exports entering the Indian market in identified sectors. Recognizing the importance of working
together to resolve long-standing concerns, India also agrees to address long-standing non-tariff
barriers to the trade in U.S. food and agricultural products.
For the purposes of enhancing ease of compliance with applicable technical regulations, the United
States and India intend to discuss their respective standards and conformity assessment procedures
for mutually agreed sectors.
In the event of any changes to the agreed upon tariffs of either country, the United States and India
agree that the other country may modify its commitments.
The United States and India will work towards further expanding market access opportunities
through the negotiations of the BTA. The United States affirms that it intends to take into
consideration, during the negotiations of the BTA, India’s request that the United States continue to
work to lower tariffs on Indian goods.
The United States and India agree to strengthen economic security alignment to enhance supply
chain resilience and innovation through complementary actions to address non- market policies of
third parties, as well as cooperation on inbound and outbound investment reviews and export
controls.
India intends to purchase $500 billion of U.S. energy products, aircraft and aircraft parts, precious
metals, technology products, and coking coal over the next 5 years. India and the United States will
significantly increase trade in technology products, including Graphics Processing Units (GPUs)
and other goods used in data centers, and expand joint technology cooperation.
The United States and India commit to address discriminatory or burdensome practices and other
barriers to digital trade and to set a clear pathway to achieve robust, ambitious, and mutually
beneficial digital trade rules as part of the BTA.
The United States and India will promptly implement this framework and work towards finalizing the
Interim Agreement with a view to concluding a mutually beneficial BTA consistent with the roadmap
agreed in the Terms of Reference.
****
Abhishek Dayal
(Release ID: 2224783) Visitor Counter : 34841
Read this release in: Urdu , Marathi , ही , Bengali , Assamese , Punjabi , Gujarati , Telugu , Kannada , Malayalam