New Delhi: The United States and India have released a framework for an interim trade deal, marking a major step toward deeper economic ties between the two countries and paving the way for a broader bilateral trade agreement.
The framework sets out plans to lower tariffs, widen market access and strengthen cooperation in areas such as energy, technology and digital trade. Officials on both sides described it as a confidence building move after years of slow and often difficult negotiations.
Under the plan, the United States will sharply reduce tariffs on several Indian exports, including textiles, apparel, leather goods, chemicals and select manufactured products. Indian exporters, especially small and medium businesses, are expected to benefit from easier access to the American market.
India, in return, has agreed to cut or remove duties on a range of US industrial goods and selected agricultural and food products. However, New Delhi has kept sensitive farm sectors such as wheat, rice, dairy and poultry outside the scope of tariff concessions, citing domestic concerns.
The framework also includes strong purchase commitments. India has signalled its intention to buy large volumes of US goods over the coming years, including energy products such as oil and gas, defence equipment, aircraft and advanced technology items. Energy cooperation is expected to be a key pillar of the relationship going forward.
Beyond tariffs, both countries have agreed to work toward aligning standards and regulations, which could make it easier for companies to do business across borders. Digital trade has also been formally included, with talks planned on data flows, technology services and online commerce.
The announcement has received backing from leaders in both capitals, including US President Donald J. Trump and Indian Prime Minister Narendra Modi, who have described the deal as strategically important at a time of shifting global supply chains.
Trade officials said the interim framework would be implemented quickly, with negotiations continuing toward a full bilateral trade agreement in the coming months. While several details still need to be finalised, the deal is being seen as a significant reset in economic relations between the United States and India.
Analysts say the framework sends a strong signal of closer cooperation between the two countries, even as both seek to protect key domestic interests.