“Common commitment to reciprocal and balanced trade”: USIBC Hails US-India Interim Trade Framework
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New Delhi [India], February 7 :
The US-India Business Council (USIBC) has congratulated the US and Indian governments for reaching a framework for an Interim Agreement on reciprocal and mutually beneficial trade. The council called it a major milestone in the growing partnership between the two countries.
In an official statement, USIBC said the interim deal reflects a shared commitment to balanced and reciprocal trade, driven by mutual interests and concrete outcomes.
USIBC Calls Interim Deal a Historic Milestone
Reacting to the joint statement issued by the White House and India’s Commerce Ministry, USIBC said the agreement strengthens the economic relationship between the two nations.
“The Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership. Furthermore, it demonstrates a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes,” USIBC said.
Framework Supports Broader US-India BTA Negotiations
According to the joint statement, the interim framework reaffirms both countries’ commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations.
Notably, the BTA talks were launched by US President Donald Trump and Prime Minister Narendra Modi on February 13, 2025. In addition, the broader agreement is expected to include:
- Additional market-access commitments
- Measures to support more resilient supply chains
- Long-term trade cooperation
India to Reduce Tariffs on US Industrial and Agricultural Products
As per the statement, India has agreed to eliminate or reduce tariffs on all US industrial goods. Additionally, India will reduce tariffs on a wide range of US food and agricultural products.
These products include:
- Dried distillers’ grains (DDGs)
- Red sorghum for animal feed
- Tree nuts
- Fresh and processed fruits
- Soybean oil
- Wine and spirits
- Additional products
India Secures Protection for Sensitive Sectors
However, the report also noted that India had reservations about opening the entire US agricultural sector to Indian markets. Because of this, the interim trade deal apparently missed the earlier timeline of fall 2025.
Nevertheless, India has reportedly secured protection for sensitive sectors, particularly agriculture and dairy, under this deal.
Non-Tariff Barriers to Be Addressed
Apart from tariff changes, both countries also agreed to address non-tariff barriers affecting bilateral trade.
For instance, India agreed to address long-standing barriers in US medical devices. Similarly, India will eliminate restrictive import licensing procedures that delay market access for, or impose quantitative restrictions on, US ICT goods.
India Plans USD 500 Billion Purchases From US Over 5 Years
Moreover, the joint statement noted that India intends to purchase USD 500 billion worth of US products over the next five years.
This includes:
- US energy products
- Aircraft and aircraft parts
- Precious metals
- Technology products
- Coking coal
Meanwhile, both countries will significantly increase trade in technology products, including GPUs and other goods used in data centres. As a result, joint technology cooperation is also expected to expand.
Tariffs Reduced From 50% to 18% After Modi-Trump Call
The report stated that earlier, the Trump administration had imposed tariffs on major exporters to the US, including India and China. In fact, Indian goods entering the US reportedly faced tariffs as high as 50% since August 2025.
However, following a phone call between PM Modi and President Trump on February 2, the tariffs were reduced to 18%, and the interim framework was announced.
BTA Targets USD 500 Billion Trade by 2030
Finally, the Bilateral Trade Agreement (BTA), proposed in February 2025, seeks to more than double bilateral trade.
Currently, trade stands at USD 191 billion. Therefore, the target is to increase it to USD 500 billion by 2030.
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