India-US Trade Deal Framework: The picture of the trade deal between India and America is now clear. The framework of the interim trade agreement between India and America has been released. The White House announced that the United States and India have agreed to a framework for an interim agreement regarding mutual and mutually beneficial trade. At the same time, Union Minister Piyush Goyal has also given this information by posting a joint statement. India has not made any compromise with the dairy and agriculture sector in this trade deal. According to Piyush Goyal, agricultural and dairy products have been completely protected.

Actually, the White House issued a joint statement today i.e. Saturday morning. PIB of the Government of India has also issued it. According to the statement, India and the United States have agreed on a framework for an interim agreement on reciprocal and mutually beneficial trade. The framework reaffirms the commitment of both countries to negotiate a comprehensive India-US bilateral trade agreement (BTA), which was launched by Prime Minister Narendra Modi and US President Donald Trump in February 2025. This agreement has been reached after almost a year of trade tension between the two countries. On February 2, PM Modi and Donald Trump had announced agreement on India-US trade deal. Trump had increased the tariff to 18 percent. This tension between India and America started when Donald Trump imposed 25 percent tariff on Indian goods and later doubled it to 50 percent as a penalty on buying Russian oil.

Not only this, today i.e. on Saturday, Donald Trump also signed an executive order, in which the punitive additional 25 percent tariff imposed on Russian oil imports from India was removed. Now only 18 percent tariff will be imposed on India.

What has Union Minister Piyush Goyal posted?
Piyush Goyal wrote, ‘Under the decisive leadership of Prime Minister Narendra Modi, India has prepared a framework for an interim agreement with America. This will open up a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen. Increase in exports will create lakhs of new job opportunities for our women and youth. Under this framework, the US will reduce mutual tariffs on Indian goods to 18%, providing a huge market opportunity to the world’s largest economy in key sectors such as textiles and clothing, leather and footwear, plastic and rubber products, organic chemicals, home decor, handicraft products and select machinery.

Make in India will get a boost

According to Piyush Goyal, apart from this, the tariff on many types of goods including generic pharmaceuticals, gems and diamonds, and aircraft parts will be reduced to zero, which will further boost India’s export competitiveness and Make in India.

India and America have issued a joint statement.

Dairy and agriculture sector protected

Piyush Goyal said, ‘India will also get exemption under Section 232 on aircraft parts, tariff rate quota on auto parts and the outcome of negotiations on generic pharmaceuticals, which will lead to solid export benefits in these sectors. Also, this agreement reflects India’s commitment to protect the interests of farmers and sustain rural livelihoods, with sensitive agricultural and dairy products like maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables, meat etc. fully protected.’

This agreement will help India and the US focus on working together to further deepen economic cooperation, reflecting our shared commitment to sustainable development for our people and businesses. Towards realizing a developed India!’

What did the government say?
The United States and India are pleased to announce that they have reached a Framework for an Interim Agreement on Mutual and Mutually Beneficial Trade (Interim Agreement). Today’s framework reaffirms countries’ commitments to negotiate a major US-India Bilateral Trade Agreement (BTA) initiated by Donald Trump and PM Modi on February 13, 2025, which will include additional market access commitments and support for more robust supply chains. The interim agreement between the United States and India marks a historic milestone in our countries’ partnership, demonstrating a common commitment to mutual and balanced trade based on mutual interests and concrete results.

Key terms of the India-US interim agreement:
▪️ India will eliminate or reduce tariffs on all American industrial goods and many American food and agricultural products. These include DDG (Dried Distillers Grains), red sorghum for animal feed, dried fruits, fresh and processed fruits, soybean oil, wine, spirits and other products.
▪️ The US will impose 18% reciprocal tariff on Indian products under Executive Order 14257 dated April 2, 2025. This includes textiles, apparel, leather, footwear, plastic-rubber, organic chemicals, home decor, handicrafts and some machinery. If the interim agreement is successful, America will remove this duty on many items including generic medicines, diamonds, gems and aircraft parts.
▪️ America will remove national security based duties imposed on some aircraft and aircraft parts coming from India. Similarly, India will get preferential tariff quota for automobile parts. India will be given special concessions in generic medicines on the basis of US scrutiny on pharmaceuticals.
▪️ Both countries will give each other preferential market access in key sectors.
▪️ ‘Rules of Origin’ will be decided so that the benefits of the agreement accrue mainly to India and America.
▪️ Both countries will remove non-tariff barriers that hinder trade. India will remove long-standing restrictions on American medical devices, IT and communication products and will also ease the way for American agricultural products.
▪️ There will be mutual discussion on technical standards and testing procedures so that it becomes easier to follow the rules.
▪️ If any country changes the tariff, the other country will also be able to amend its commitments.
▪️ Market access will be further enhanced through BTA negotiations. America has indicated that it will consider the request to reduce duties on Indian products.
▪️ Both countries will increase cooperation in economic security, supply chain strengthening, investment review and export control.
▪️ India will buy energy products, aircraft and spare parts, precious metals, technology products and coking coal worth $500 billion from America in the next five years. Both the countries will also rapidly increase the trade of technical products related to data center including GPU.
▪️ It has been agreed to eliminate discriminatory policies in digital trade and make strong digital trade rules.
Both countries will quickly implement this framework and work towards finalizing the interim agreement, so as to complete a comprehensive and mutually beneficial bilateral trade agreement as per the defined roadmap.