India and the US have signed a trade deal to boost economic ties, easing market access and reducing US tariffs on Indian goods from 50% to 18%. The pact also expands cooperation in advanced technologies like GPUs and data centre equipment.
India and the United States have strengthened their economic partnership through a wide-ranging bilateral trade deal aimed at easing market access, reducing trade frictions, and expanding cooperation in advanced technologies. Commerce and Industry Minister Piyush Goyal said that the India-US trade deal reinforces a shared commitment to facilitating trade, expanding market opportunities, and strengthening bilateral economic engagement.
A 'Big Win' for Indian Exporters
With several of non-tariff barriers set to be addressed, besides US tariffs on India reduced to 18 per cent from 50 per cent, the minister said it will be a big win for Indian exporters. Compliances will come down, procedure delays will reduce, employment opportunities and market access will increase, the minister said in a post on X.
Boost to Technology Cooperation
Under this trade agreement, India and the United States will significantly increase trade in technology products, including Graphics Processing Units (GPUs) and other goods used in data centres, and expand joint technology cooperation.
Piyush Goyal said that technology cooperation will accelerate India's digital and AI ecosystem and increase trade in products such as GPUs and data centre equipment. Additionally, it will lower costs for Indian companies by improving access to cutting-edge US technologies, thereby attracting greater investment, skill development, jobs, and manufacturing partnerships.
"The India-US Trade Deal will not only provide greater access to the US market for Indian products but also support our labour-intensive sectors. Additionally, it will give a big boost to our digital infrastructure," the commerce minister posted on X.
Sector-Specific Gains
Reduced tariffs on India are gains for textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, and artisanal products exporters.
Agreement Framework and Background
The US and India announced in a joint statement that they have reached a framework for an Interim Agreement on reciprocal, mutually beneficial trade (the Interim Agreement) and have agreed on its terms. The framework reaffirms the countries' commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market-access commitments and support for more resilient supply chains.
Furthermore, both countries decided to address non-tariff barriers affecting bilateral trade. On February 2, a phone call between Prime Minister Narendra Modi and US President Donald Trump led to the announcement of the conclusion of negotiations on the much-awaited trade deal.
The Trump administration had imposed tariffs on major exporters to the US, including India and China. There was a 50 per cent tariff on goods from India entering the United States since August 2025. The tariffs have now been reduced to 18 per cent following the leaders' recent phone call.
The BTA, formally proposed in February 2025, seeks to more than double bilateral trade, from the current USD 191 billion to USD 500 billion by 2030. (ANI)
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