India-US trade deal LIVE: India-US finalise framework for interim trade deal, Trump lifts penalty tariffs
India-US trade deal live updates: The United States and India have finalised a framework for an “interim agreement” on reciprocal and mutually beneficial trade, the White House announced late night on Saturday, February 6. The framework marks a formal breakthrough after nearly a year of negotiations between the two countries.
Union commerce and industry minister Piyush Goyal shared the joint statement on social media, underlining the scale of market access the newly reached framework could unlock. He said that under the leadership of Prime Minister Narendra Modi, India had reached a framework for an interim agreement with the US that would “open a $30 trillion market for Indian exporters.”
Highlighting the beneficiaries, Goyal said the deal would particularly help MSMEs, farmers and fishermen, while adding that increased exports would create “lakhs of new job opportunities for our women and youth.”
The announcement comes days after US President Donald Trump said on Monday that Washington and New Delhi had reached a trade deal, a claim later confirmed by Prime Minister Narendra Modi. PM Modi had stated that under the agreement, reciprocal tariffs on Indian exports to the US would be reduced to 18%.
Trump removes 25% penalty tariff, claims India to stop Russian oil imports
At the same time, President Trump signed an executive order announcing the removal of a 25% tariff on India. The executive order signed by Trump reiterates his claim that India has “committed” to stop importing oil from the Russian Federation “directly or indirectly.” It further states that India has committed to purchasing energy products from the United States.
Trump had earlier used a Truth Social post to claim that India would stop purchasing Russian oil, describing it as a key element of the agreement. That assertion, however, did not feature in PM Modi’s post on X, which was released shortly after Trump’s announcement.
Earlier, When ministry of external affairs spokesperson Randhir Jaiswal was asked about Trump’s claim over Russian oil imports, he stressed that ensuring the energy security of 1.4 billion Indians remains government’s “supreme priority”.
He said India’s approach is centred on diversification, adding, “Diversifying energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India’s decisions are taken and will be taken with this in mind.”
India–US trade deal interim framework | Top points
1. India to cut tariffs on US industrial and farm goods
India will eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products. These include dried distillers’ grains (DDGs), red sorghum used for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among other products.
2. US applies reciprocal 18% tariff on Indian goods
The United States will apply a reciprocal tariff rate of 18% on Indian-origin goods. Covered sectors include textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products and certain machinery.
3. Zero tariffs on select Indian exports after interim deal
Subject to the successful conclusion of the interim agreement, the US will remove reciprocal tariffs on a wide range of Indian goods. These include generic pharmaceuticals, gems and diamonds, and aircraft parts.
4. Removal of national security tariffs on aircraft parts
The US will remove tariffs imposed on Indian aircraft and aircraft parts under earlier national security proclamations related to aluminium, steel and copper imports.
5. Mutual preferential market access commitment
Both countries have committed to providing each other preferential market access in sectors of mutual interest on a sustained basis.
6. Easing barriers on US food and agricultural exports
India has also agreed to address long-standing non-tariff barriers affecting US food and agricultural products, acknowledging the need to resolve persistent market access concerns.
7. Alignment on standards and conformity assessments
To improve ease of compliance, the two countries will discuss standards and conformity assessment procedures in mutually agreed sectors.
8. Safeguard clause on tariff changes
If either country changes agreed tariff levels in the future, the other country will be allowed to modify its commitments in response.
9. Pathway to broader Bilateral Trade Agreement (BTA)
The interim framework is positioned as a stepping stone toward a full Bilateral Trade Agreement. The US has said it will consider India’s request for further tariff reductions on Indian goods during BTA negotiations.
10. India plans $500 billion purchases from the US
India has stated its intention to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
11. Technology trade and cooperation expansion
Both sides will significantly increase trade in technology products, including GPUs and other goods used in data centres, while also expanding joint technology cooperation.
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Union commerce and industry minister Piyush Goyal shared the joint statement on social media, underlining the scale of market access the newly reached framework could unlock. He said that under the leadership of Prime Minister Narendra Modi, India had reached a framework for an interim agreement with the US that would “open a $30 trillion market for Indian exporters.”
Highlighting the beneficiaries, Goyal said the deal would particularly help MSMEs, farmers and fishermen, while adding that increased exports would create “lakhs of new job opportunities for our women and youth.”
The announcement comes days after US President Donald Trump said on Monday that Washington and New Delhi had reached a trade deal, a claim later confirmed by Prime Minister Narendra Modi. PM Modi had stated that under the agreement, reciprocal tariffs on Indian exports to the US would be reduced to 18%.
Trump removes 25% penalty tariff, claims India to stop Russian oil imports
At the same time, President Trump signed an executive order announcing the removal of a 25% tariff on India. The executive order signed by Trump reiterates his claim that India has “committed” to stop importing oil from the Russian Federation “directly or indirectly.” It further states that India has committed to purchasing energy products from the United States.
Trump had earlier used a Truth Social post to claim that India would stop purchasing Russian oil, describing it as a key element of the agreement. That assertion, however, did not feature in PM Modi’s post on X, which was released shortly after Trump’s announcement.
Earlier, When ministry of external affairs spokesperson Randhir Jaiswal was asked about Trump’s claim over Russian oil imports, he stressed that ensuring the energy security of 1.4 billion Indians remains government’s “supreme priority”.
He said India’s approach is centred on diversification, adding, “Diversifying energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India’s decisions are taken and will be taken with this in mind.”
India–US trade deal interim framework | Top points
1. India to cut tariffs on US industrial and farm goods
India will eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products. These include dried distillers’ grains (DDGs), red sorghum used for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among other products.
2. US applies reciprocal 18% tariff on Indian goods
The United States will apply a reciprocal tariff rate of 18% on Indian-origin goods. Covered sectors include textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products and certain machinery.
3. Zero tariffs on select Indian exports after interim deal
Subject to the successful conclusion of the interim agreement, the US will remove reciprocal tariffs on a wide range of Indian goods. These include generic pharmaceuticals, gems and diamonds, and aircraft parts.
4. Removal of national security tariffs on aircraft parts
The US will remove tariffs imposed on Indian aircraft and aircraft parts under earlier national security proclamations related to aluminium, steel and copper imports.
5. Mutual preferential market access commitment
Both countries have committed to providing each other preferential market access in sectors of mutual interest on a sustained basis.
6. Easing barriers on US food and agricultural exports
India has also agreed to address long-standing non-tariff barriers affecting US food and agricultural products, acknowledging the need to resolve persistent market access concerns.
7. Alignment on standards and conformity assessments
To improve ease of compliance, the two countries will discuss standards and conformity assessment procedures in mutually agreed sectors.
8. Safeguard clause on tariff changes
If either country changes agreed tariff levels in the future, the other country will be allowed to modify its commitments in response.
9. Pathway to broader Bilateral Trade Agreement (BTA)
The interim framework is positioned as a stepping stone toward a full Bilateral Trade Agreement. The US has said it will consider India’s request for further tariff reductions on Indian goods during BTA negotiations.
10. India plans $500 billion purchases from the US
India has stated its intention to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
11. Technology trade and cooperation expansion
Both sides will significantly increase trade in technology products, including GPUs and other goods used in data centres, while also expanding joint technology cooperation.
Follow all the updates here:
Feb 07, 2026 7:48:24 AM IST
India-US trade deal LIVE: Piyush Goyal says India-US interim deal unlocks $30 trillion export opportunity
India-US trade deal LIVE: Commerce and industry minister Piyush Goyal on saturday welcomed the finalisation of the India-US interim trade framework, calling it a major step forward for Indian exporters and job creation under the leadership of Prime Minister Narendra Modi.
In a statement shared after the deal, Goyal said that “India has reached a framework for an Interim Agreement with the US,” adding that it would “open a $30 trillion market for Indian exporters.”
He highlighted that the biggest gains would accrue to MSMEs, farmers and fishermen, while noting that the expected rise in exports would create “lakhs of new job opportunities for our women and youth.”
Goyal pointed out that a key feature of the framework is the reduction in US reciprocal tariffs on Indian goods to 18%. He said this would create a “huge market opportunity” for Indian products in sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products and select machinery in the world’s largest economy.
Feb 07, 2026 7:42:20 AM IST
India–US trade deal interim framework | Top points
1. India to cut tariffs on US industrial and farm goods
India will eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products. These include dried distillers’ grains (DDGs), red sorghum used for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among other products.
2. US applies reciprocal 18% tariff on Indian goods
The United States will apply a reciprocal tariff rate of 18% on Indian-origin goods. Covered sectors include textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products and certain machinery.
3. Zero tariffs on select Indian exports after interim deal
Subject to the successful conclusion of the interim agreement, the US will remove reciprocal tariffs on a wide range of Indian goods. These include generic pharmaceuticals, gems and diamonds, and aircraft parts.
4. Removal of national security tariffs on aircraft parts
The US will remove tariffs imposed on Indian aircraft and aircraft parts under earlier national security proclamations related to aluminium, steel and copper imports.
5. Mutual preferential market access commitment
Both countries have committed to providing each other preferential market access in sectors of mutual interest on a sustained basis.
6. Easing barriers on US food and agricultural exports
India has also agreed to address long-standing non-tariff barriers affecting US food and agricultural products, acknowledging the need to resolve persistent market access concerns.
7. Alignment on standards and conformity assessments
To improve ease of compliance, the two countries will discuss standards and conformity assessment procedures in mutually agreed sectors.
8. Safeguard clause on tariff changes
If either country changes agreed tariff levels in the future, the other country will be allowed to modify its commitments in response.
9. Pathway to broader Bilateral Trade Agreement (BTA)
The interim framework is positioned as a stepping stone toward a full Bilateral Trade Agreement. The US has said it will consider India’s request for further tariff reductions on Indian goods during BTA negotiations.
10. India plans $500 billion purchases from the US
India has stated its intention to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
11. Technology trade and cooperation expansion
Both sides will significantly increase trade in technology products, including GPUs and other goods used in data centres, while also expanding joint technology cooperation.
Feb 07, 2026 7:27:56 AM IST
India-US trade deal LIVE: Trump removes penalty tariffs on India
India-US trade deal LIVE: US President Donald Trump on Friday signed an executive order removing the 25% penalty tariffs imposed on India, a move that follows the finalisation of a framework for an interim trade agreement between the two countries.
The decision comes days after Trump announced that Washington and New Delhi had struck a trade deal after nearly a year of negotiations, a claim later confirmed by Prime Minister Narendra Modi. The White House has since said the two sides have agreed on a framework for a “reciprocal and mutually beneficial” interim trade agreement.
The executive order links the tariff rollback to what the US administration describes as India’s commitments on trade, energy and strategic alignment. It reiterates Trump’s claim that India has committed to stop importing Russian oil “directly or indirectly” and to purchase energy products from the United States.
