Explainer: India and US reach framework for interim trade agreement
India and the US reached a framework for an interim trade agreement under which the United States would apply a reciprocal tariff rate of 18% on originating Indian goods.
Announced in early February 2026, the move follows the joint statement issued by India and the United States on February 7, 2026.
India will lower or remove tariffs on a bunch of US goods—from farm products like grains and fruits to wines and spirits.
In return, the US sets the same 18% tariff on Indian textiles, leather, footwear, plastics, and rubber.
Why it matters
This deal opens up the massive US market for Indian exporters—great news if you're eyeing global business or jobs in these sectors.
The US would remove reciprocal tariffs on key Indian products like generic medicines and gems, subject to the successful conclusion of the interim agreement.
Plus, it smooths over recent trade tensions (including contentious issues around India's purchases of Russian oil).
Overall, it's a big step for stronger India-US ties and more opportunities for young professionals and entrepreneurs.