India–US Interim Trade Agreement: strengthening a strategic economic partnership

In brief

India and the United States (US) have reached a framework for an Interim Trade Agreement (ITA) under a broader anticipated Bilateral Trade Agreement (BTA), marking a significant step in revitalising and deepening trade and economic relations between the world’s two largest democracies.  

This framework, announced on 7 February 2026¹, establishes a roadmap for reciprocal market access, tariff liberalisation, non-tariff barrier reductions, enhanced cooperation on standards and deeper economic integration. 

The ITA framework builds on negotiations launched by the Prime Minister of India and the US President on 13 February 2025 and represents a milestone in economic ties, demonstrating both countries’ intent to pursue reciprocal and balanced trade while supporting resilient supply chains and broader economic cooperation.

Outside the scope of this deal, the US has also removed the 25% tariffs which were imposed on India due to direct or indirect importation of Russian Federation oil from 7 February 2026. However, the removal of these tariffs is subject to India committing to stop directly or indirectly importing Russian oil.