Context
India and the United States announced a framework for an interim trade deal focused on tariff reductions and preferential market access.
Key Points
• India will cut tariffs on U.S. industrial goods and a wide range of agricultural products
• U.S. will lower tariffs on Indian goods
• Additional 25% tariff imposed in 2025 already reduced by the U.S. to 18%
• Sensitive items such as agriculture and dairy kept out
• India commits to buy $500 billion worth of U.S. products over 5 years
• Both sides agreed on preferential market access and rules of origin
• Deal expected to be formally signed by mid-March
