India-US trade deal: India and the United States on 6 February announced an interim trade framework agreement, with commitment from both countries to broaden trade, and reduction in the US reciprocal tariffs to 18% from earlier 50%.
A joint statement issued by India and the US said the interim agreement “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”.
Notably, this comes almost a year after US President Donald Trump and Prime Minister Narendra Modi began negotiations on the broader US-India Bilateral Trade Agreement (BTA) on 13 February 2025.
US-India trade deal: Non-tariff barriers to be addressed
The joint statement further said that India and the US will also “address non-tariff barriers that affect bilateral trade”. It stated:
- India agrees to address long-standing barriers to the trade in US medical devices;
- Eliminate restrictive import licensing procedures that delay market access for, or impose quantitative restrictions on, US 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 US-developed or international standards, including testing requirements, are acceptable for the purposes of US 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 US food and agricultural products.
“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,” the statement added.