Overview
- The published framework sets a U.S. reciprocal tariff of 18% on a wide range of Indian-origin goods, with potential removal of duties on items such as generic pharmaceuticals, gems and diamonds, and aircraft parts once the interim deal is concluded.
- India will eliminate or reduce tariffs on specified U.S. industrial and agricultural products, including dried distillers’ grains, red sorghum, tree nuts, fresh and processed fruits, soybean oil, wine and spirits.
- New Delhi has ring-fenced sensitive farm and dairy categories—such as rice, wheat, maize, soya, poultry, milk and cheese—confirming no tariff concessions for these staples.
- Both governments commit to address non-tariff barriers, align standards and conformity procedures, and expand technology and digital trade cooperation, including GPUs and data-centre equipment.
- Key details remain pending—full legal texts, tariff schedules and timelines—though officials indicate the interim agreement could be signed as early as March, and India has stated an intention to purchase $500 billion in U.S. goods over five years.