India-US Trade Deal Impact: Rs 41.5 lakh crore purchasing boost! What India intends in next 5 years? Check top sectors

India-US trade deal: The long-awaited deal between India and the US has finally reached a framework stage. The United States (USA) and India on Saturday, February 7, announced that they have reached a framework for an interim trade agreement, under which the US will reduce tariffs on Indian goods to 18 per cent, according to a joint statement issued by the White House.

The US on Saturday said India has committed to stop directly or indirectly importing Russian oil, following which the additional 25 per cent tariffs imposed by America on Indian goods will be removed from February 7. According to an executive order issued by the White House, India has also committed to a framework with the US to expand defence cooperation over the next 10 years.

The formal text details the scope, terms, and anticipated outcomes of the proposed Interim Agreement agreed to by both sides.

The United States of America (United States) and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement).

Today's framework reaffirms the countries' commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, launched by 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 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.

India-US trade deal: Rs 41.5 lakh crore pact to boost energy, tech, and metals over 5 years

India and the United States have announced a major trade framework under which India plans to purchase Rs 41.5 lakh crore of US goods over the next five years, spanning energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal.

The deal also aims to significantly expand trade in advanced technology, including Graphics Processing Units (GPUs) and other data centre equipment, while deepening joint technology cooperation between the two nations.

As part of the agreement, both countries have committed to addressing discriminatory or burdensome practices and other barriers to digital trade. The framework sets a clear pathway toward robust, ambitious, and mutually beneficial digital trade rules, strengthening the broader Bilateral Trade Agreement (BTA) and promoting fair, reciprocal economic engagement.