The United States and India announced a new framework Thursday aimed at reshaping trade between the two countries and setting the stage for a broader bilateral agreement.
The joint statement outlines an Interim Agreement that both sides say will serve as a major step toward a full U.S.-India Bilateral Trade Agreement launched last year by President Donald Trump and Prime Minister Narendra Modi.
The framework commits India to eliminate or reduce tariffs on all U.S. industrial goods and a wide range of American food and agricultural products. Those include nuts, fruit, soybean oil, wine, spirits, and animal feed products.
In return, the United States will apply a reciprocal tariff rate of 18% on Indian goods such as textiles, apparel, chemicals, and machinery. The statement says the U.S. will later remove those tariffs on a broad range of products if the Interim Agreement is successfully completed.
The agreement also calls for the removal of U.S. tariffs on certain Indian aircraft and aircraft parts. India will receive preferential access for some automotive parts, subject to U.S. national security requirements.
Both countries agreed to tackle non-tariff barriers that have slowed trade. India committed to addressing long-standing obstacles affecting U.S. medical devices, technology products, and agricultural exports.
The framework also includes plans to align standards, set rules of origin, and expand cooperation on supply chains, export controls, and investment reviews.
One of the largest commitments comes on energy and technology. India said it intends to purchase $500 billion worth of U.S. energy products, aircraft, technology goods, and other materials over the next five years. The two countries also plan to expand trade in advanced technology, including data center equipment.
The statement says both sides will move quickly to implement the framework and continue negotiations toward a full bilateral trade agreement.
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