India-US Trade Deal: From EU to UAE - NDA finalises nine major trade pacts since 2014 | See full list

The US and India on Saturday announced that they have reached a framework for an interim trade agreement, under which America will reduce tariffs on India to 18 per cent, according to a joint statement issued by the White House. Both have announced that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement).

The framework reaffirms the countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, launched by US President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.

The Ministry of Commerce & Industry has shared the joint statement in a late night note on PIB. The Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes.

Earlier, the European Union (EU) and India concluded negotiations on a landmark free trade agreement, ending an 18-year gap since talks began in 2007. The deal will cut or remove duties on over 90 per cent of EU exports to India, creating a trade bloc spanning 2 billion people and marking the largest agreement ever for both sides.

India's pact with the EU and the US are two of the biggest. Meanwhile, the FTA with EU includes countries like -- France, Germany, Spain, Italy, Austria, Belgium, Bulgaria, Finland, Hungary, Ireland, the Netherlands, Portugal, Poland, Denmark and Sweden.