Union Commerce Minister Piyush Goyal confirmed on Saturday that India has reached a framework for an interim deal with the United States. In a joint statement, the two countries said they would “quickly implement this framework” and work to finalize the interim agreement to achieve a mutually beneficial trade agreement (BTA).

The framework reaffirms its commitment to deepen economic and commercial ties. The interim agreement comes nearly a week after US President Donald Trump announced that both countries had reached an agreement to cut US tariffs on Indian goods from 50% to 18% in exchange for India reducing purchases of Russian oil.

Trump announced the deal after a call with Prime Minister Narendra Modi, saying India would start buying American oil. He too rescinded a 25% duty on Indian importswhile warning that tariffs could return if India resumes oil purchases from Russia.

US Trade Representative Greer said the interim agreement was a key step in boosting US access and bilateral ties. The details of the long-awaited framework of the agreement are already out: from the size of the export market to tariff reductions in protected sectors.

What is India getting?

Goyal said the deal would open up a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen.

He added that increased exports would create thousands of new job opportunities for women and youth. Goyal also gave an update on US reciprocal tariffs on Indian goods.

“As part of this framework, the US to cut reciprocal tariffs on Indian goods to 18%providing a huge market opportunity in key sectors such as textiles and garments, leather and footwear, plastic and rubber products, organic chemicals, home decoration, handicrafts and selected machinery in the world’s largest economy,” he wrote in X.

He added this tariffs would drop to zero in goods such as generic pharmaceuticals, gems and diamonds, and aircraft parts.

The Union minister mentioned that New Delhi will also get exemptions under Section 232 for aircraft parts, tariff quotas on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors.

Piyush Goyal reiterated that the the agricultural and dairy sectors have been protectedsafeguarding farmers’ interests and maintaining rural livelihoods. The products for which protection has been requested are corn, wheat, rice, soy, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables, meat, etc.

He wrote at the end of his post: “This agreement will help India and the US remain focused on working together to further deepen economic cooperation, reflecting a shared commitment to sustainable growth for our people and businesses. Towards the realization of Viksit Bharat!”

What will the US get?

India, on the other hand, is committed to it eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural productsincluding dried distillers grains (DDG), red sorghum for animal feed, nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

New Delhi has also agreed to eliminate restrictive import licensing procedures that delay market access or impose quantitative restrictions on US information and communication technology (ICT) products, in addition to addressing long-standing barriers to trade in US medical devices.

According to the joint statement, New Delhi has also agreed to “determine, with a view to a positive outcome, within six months of the entry into force of the agreement, whether US-developed or international standards, including testing requirements, are acceptable for US exports entering the Indian market in identified sectors.”

India also intends to buy $500 billion in US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next 5 years.

The common ground

“For purposes of improving ease of compliance with applicable technical regulations, the United States and India intend to discuss their respective standards and conformity assessment procedures for mutually agreed sectors,” the Commerce Ministry statement said.

Both countries will increase trade in technology products, including graphics processing units (GPUs) and other goods used in data centers, and expand joint technology cooperation.

They also committed to addressing discriminatory and burdensome practices and other barriers to digital trade, as well as setting a clear path to achieving strong, ambitious and mutually beneficial digital trade rules as part of the bilateral trade agreement (BTA).

Both countries are committed to providing each other with preferential market access in sectors of respective interest on a sustained basis. They will also establish rules of origin to ensure that the benefits of the agreement accrue to India and for India.