On February 7, 2026, a historic India-US trade deal was finalised significant interim trade deal, reducing tariffs on Indian goods to 18%. Union Commerce Minister Piyush Goyal described the agreement as a historic milestone in the partnership between the two nations.
Previously, Indian exports faced a 50% tariff, including a 25% penalty for purchasing Russian oil. The new framework eliminates this penalty, enhancing trade relations. The US will also remove reciprocal tariffs on Indian goods such as medicines and gemstones.
The deal addresses non-tariff barriers affecting medical devices, agricultural products, and information technology goods. India has committed to assessing its import procedures and considering US standards for American exports.
Furthermore, India will purchase $500 billion worth of US energy products, aircraft, and technology over the next five years. This move is expected to strengthen the ‘Make in India’ initiative and boost employment.
Digital trade and technology collaboration, including GPUs for data centers, are key aspects of the deal. Both countries aim to expand market access and enhance bilateral trade through ongoing negotiations.
Published in SouthAsianDesk, February 7th, 2026
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
