The White House announced a major step forward in United States-India economic relations. The United States and India said they have reached a framework that lays groundwork for a broader, long-term bilateral trade deal.
Here is the key details, the White House said in the official joint statement released February 6, 2026:
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The United States and India have agreed on a framework for an interim trade deal that moves both countries closer to a full bilateral trade agreement. U.S. officials are calling it a major step in strengthening economic ties.
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The framework builds on trade talks launched in February 2025 by President Donald Trump and India’s Prime Minister Narendra Modi, with a focus on fair and balanced trade and stronger supply chains.
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India has agreed to cut or remove tariffs on nearly all U.S. industrial goods and many American farm and food products. These include animal feed, nuts, fruits, soybean oil, and alcoholic beverages, giving U.S. exporters wider access to the Indian market.
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The United States will impose a reciprocal tariff of 18 percent on Indian goods in the near term, covering products such as apparel, footwear, chemicals, home décor, and some machinery.
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Once the interim deal is finalized, the U.S. plans to lift tariffs on several key Indian exports, including generic medicines, diamonds, aircraft parts, and certain high value manufacturing goods.
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The U.S. will also roll back tariffs on Indian aircraft and aircraft parts that were previously imposed for national security reasons tied to metals imports.
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India will receive preferential access for some auto parts exports to the U.S., subject to national security rules. Decisions on pharmaceutical tariffs will depend on the outcome of a separate U.S. investigation.
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Both countries have agreed to give each other preferential access in sectors they consider strategic and important over the long term.
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The agreement includes rules to ensure that trade benefits mainly flow between the U.S. and India, rather than third countries.
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India has committed to removing long standing regulatory and licensing barriers that have limited U.S. exports of medical devices, technology products, and agricultural goods.
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The two sides will work to align standards and testing requirements in select industries to make it easier for companies to sell products in each other’s markets.
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Either country will be allowed to adjust its commitments if the other side changes agreed tariff levels.
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The interim deal is meant to pave the way for a broader trade agreement. U.S. officials say they will consider India’s request for lower tariffs on Indian goods as full negotiations continue.
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Washington and New Delhi also plan closer cooperation on economic security, including supply chains, investment screening, and export controls, especially in response to policies from third countries.
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India has signaled its intention to buy about $500 billion worth of U.S. energy, aircraft, technology products, precious metals, and coking coal over the next five years.
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Trade in advanced technology products such as data center equipment and GPUs is expected to grow, alongside deeper U.S. India cooperation in critical technologies.
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Both countries have agreed to work toward stronger digital trade rules and to address practices that restrict cross border digital commerce.
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The two governments say they will move quickly to implement the framework and finalize the interim agreement, keeping the goal of a full U.S. India trade deal firmly in sight.