Piyush Goyal On U.S. - India Interim Trade Deal

The United States and India have reached a historic framework for an Interim Trade Agreement, marking a major milestone in their economic partnership. This agreement reaffirms both countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, originally launched by President Donald J. Trump and Prime Minister Narendra Modi in February 2025.

Under this Interim Agreement, India will reduce or eliminate tariffs on U.S. industrial and agricultural products, including dried distillers’ grains, red sorghum, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits. The U.S. will apply reciprocal tariffs on Indian goods, including textiles, leather, home décor, artisanal products, machinery, and pharmaceuticals, while providing preferential access for certain aircraft, parts, and automotive components.

The agreement also strengthens supply chain resilience, expands market access, addresses non-tariff barriers, and enhances cooperation on technology, digital trade, and investment. Notably, India plans to purchase $500 billion worth of U.S. energy, technology, aircraft, and precious metals over the next five years, creating unprecedented opportunities for businesses and consumers in both countries.

This exclusive framework sets the stage for a mutually beneficial BTA and reinforces India’s position as a trusted global trade partner.