India has secured meaningful tariff relief and improved market access in the United States under a newly announced interim trade framework, giving New Delhi a stronger competitive position in the world’s largest consumer market.

Washington and New Delhi confirmed a framework for an Interim Agreement on “reciprocal and mutually beneficial trade,” keeping negotiations on track for a comprehensive US–India Bilateral Trade Agreement that began last year.

At the heart of the deal is a uniform 18 per cent reciprocal tariff that the US will apply to a range of Indian exports, including textiles and apparel, leather and footwear, plastics, organic chemicals, home décor, artisanal goods and select machinery. This places India ahead of several regional competitors that face higher or less predictable duties.

The arrangement also narrows India’s tariff gap with Europe, which faces a 15 per cent rate, improving the price competitiveness of Indian goods in both Western markets. Exporters in labour-intensive sectors such as garments, leather and engineering are expected to benefit the most.

Crucially, the framework creates a pathway toward eventual tariff elimination on key Indian exports such as generic pharmaceuticals, gems and diamonds, and aircraft components—sectors where India holds strong global standing.

The US will lift certain national-security tariffs on Indian aircraft and aircraft parts, while India will receive a preferential quota for automotive components currently subject to American security duties.

Beyond tariffs, both sides committed to reducing non-tariff barriers. India agreed to ease restrictions affecting US medical devices and information-communication technology products, and to review international standards within six months of the agreement taking effect.

New Delhi also signalled its intent to purchase up to $500 billion in US energy products, aircraft, precious metals, technology goods and coking coal over the next five years, deepening commercial ties.

The deal further lays groundwork for stronger digital trade rules and expanded cooperation on advanced technologies such as data-centre hardware and semiconductors—marking a shift toward a more strategic economic partnership.