Where does India–US trade deal currently stand? What’s next and when

Indian and American officials will begin a three-day meeting in the US from February 23 to translate the agreed framework of an interim trade agreement into a legal text, PTI reported on Friday, citing an official.

Earlier this month, India and the United States reached a framework for an interim trade agreement that lowers American tariffs on a wide range of Indian exports.

Under the interim pact, both countries will extend duty concessions on a wide range of traded goods.

What’s on the table

The US has announced it will reduce reciprocal tariffs on Indian products from 25 per cent to 18 per cent and has already removed the 25 per cent punitive duties imposed earlier over India’s purchase of Russian crude oil.

India exported goods worth USD 86.35 billion to the US in 2024. Of this, exports worth USD 40.96 billion were subject to reciprocal tariffs that went as high as 50 per cent in several categories.

As per the framework, tariffs on exports worth $30.94 billion have been reduced from 50% to 18%, while duties on another $10.03 billion have been cut from 50% to zero.

A zero reciprocal duty access has been assured for $1.04 billion under exemption categories, including agricultural products valued at $1.035 billion.

A further $28.30 billion in exports will receive zero reciprocal duty under Section 232 end-use provisions, removing additional levies that earlier could climb to 50%.

The framework also creates a clear tariff differential in India’s favour as competing suppliers continue to face higher tariffs, including China at 35%, Vietnam and Bangladesh at 20%, and Malaysia, Indonesia, the Philippines, Cambodia and Thailand at around 19%.

While the joint statement lays down the contours of the deal, the upcoming round will now give legal shape to that understanding.

The Indian delegation will be led by chief negotiator Darpan Jain, Joint Secretary in the Commerce Ministry.

Commerce and Industry Minister Piyush Goyal on Friday said the interim trade agreement between India and the US is likely to be signed in March and operationalised in April.

US Trade Representative (USTR) Jamieson Greer is likely to visit India in March to sign the agreement.