India, US Reach Framework for Interim Trade Agreement - Piyush Goyal

India and the United States have reached a framework understanding for an interim trade agreement, officials familiar with the negotiations said, marking a fresh attempt to stabilize commercial ties after years of tariff disputes and market-access disagreements.

The framework is expected to function as a bridging arrangement while both sides continue talks toward a broader bilateral trade pact. Sources indicate the interim deal focuses on limited tariff adjustments, regulatory cooperation, and sector-specific market access, particularly in pharmaceuticals, digital trade, and select agricultural goods. The goal is to deliver early economic gains without waiting for a comprehensive free trade agreement, which could take years to finalize.

Indian negotiators have pushed for restoration of preferential access for certain exports and easier entry for services and technology firms, while U.S. representatives have emphasized intellectual property protections and reduction of non-tariff barriers. Officials describe the talks as pragmatic and incremental, aimed at building trust rather than resolving every outstanding dispute.

Union Commerce Minister Goyal sharing this news on X wrote, "Under the decisive leadership of PM @NarendraModi ji, India has reached a framework for an Interim Agreement with the US. This will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen. The increase in exports will create lakhs of new job opportunities for our women and youth."

"As part of this framework, the US will slash reciprocal tariffs on Indian goods to 18%, providing a huge market opportunity in key sectors such as textiles & apparel, leather & footwear, plastic & rubber products, organic chemicals, home décor, artisanal products, and select machinery in the world’s largest economy. Additionally, tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thereby further enhancing India’s export competitiveness and Make in India."

"India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors. At the same time, the Agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain vegetables, meat, etc."

"This agreement will help India and the US remain focused on working together to further deepen economic cooperation, reflecting shared commitment to sustainable growth for our people and businesses. Towards realising Viksit Bharat !"