INDIA- UNITED STATES INTERIM TRADE AGREEMENT

News: A major breakthrough in reciprocal market access and tariff realignments.

ABOUT

• A temporary, outcome-oriented trade framework: To deliver early harvest commitments on tariffs, market access, and non-tariff barriers
• Negotiations continue for a full-fledged Bilateral Trade Agreement (BTA).
• To enhance supply-chain resilience and economic security.
• To pave the way for a comprehensive BTA with durable trade rules.
• To establish reciprocal and balanced trade based on mutual interests.
• To expand market access for goods, agriculture, technology, and energy.

Key Features

• Cooperation: Export controls, investment screening, and countering non-market policies
• India commits to easing long-standing barriers in medical devices, ICT goods, and agricultural imports
• Removal of U.S. Section 232 tariffs on Indian aircraft parts, steel, aluminium-linked items
• India plans to purchase USD 500 billion worth of U.S. energy, aircraft, critical minerals, and technology
• The U.S. will apply a reciprocal tariff rate of 18%, a pathway to tariff removal on priority sectors