The US-India Strategic Partnership Forum (USISPF) has welcomed the joint statement issued by India and the United States, announcing a framework for an interim agreement on reciprocal and mutually beneficial trade.
In a statement, USISPF said the framework reaffirms the shared commitment of US President Donald Trump and Prime Minister Narendra Modi to advance negotiations towards a comprehensive India–US Bilateral Trade Agreement (BTA).
“The Interim Agreement represents an important milestone, signalling clear political intent on both sides to deliver balanced and concrete outcomes that deepen the bilateral economic partnership,” the forum said.
USISPF noted that the framework outlines steps to expand market access, reduce tariffs and address long-standing non-tariff barriers, while strengthening cooperation across key sectors including industrial goods, agriculture, energy, aerospace, pharmaceuticals, technology and digital trade. It added that commitments on regulatory transparency, standards alignment and supply chain resilience reflect a pragmatic approach to trade policy.
The forum also welcomed the Executive Order signed by President Trump eliminating the additional 25 per cent ad valorem duty on imports of Indian-origin goods, effective February 7, 2026.
“Together, these measures lay the groundwork for sustained economic engagement for businesses operating across both markets,” USISPF said.
Separately, the Indian Pharmaceutical Alliance (IPA) welcomed the interim agreement, saying that strengthening the India–US medicines partnership is vital, as medicine security forms part of national security.
IPA said generic medicines have been exempted from tariffs, while noting that pharmaceuticals, including generics, remain subject to the ongoing US Section 232 investigation, in line with approaches adopted in other free trade agreements.
FICCI President Anant Goenka said the India–US trade framework marks a pivotal step in strengthening economic synergy between the two democracies. He said the agreement would help lower tariffs, ease regulatory bottlenecks and enhance competitiveness, technology access and supply chain resilience.
Economist Abhirup Sarkar of the Indian Statistical Institute said the easing of trade barriers reflected in the joint statement could be seen as a major breakthrough in bilateral trade relations.
In the joint statement, India and the United States said they have agreed on the terms of an Interim Agreement on reciprocal and mutually beneficial trade. India also expressed its intention to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
Both sides agreed to significantly expand trade in technology products, including graphics processing units used in data centres, and to strengthen joint technology cooperation.
The interim framework follows a phone conversation between Prime Minister Modi and President Trump on February 2, which led to the conclusion of negotiations on the long-pending trade agreement.
Tariffs imposed by the US on Indian goods since August 2025 have now been reduced from 50 per cent to 18 per cent following the agreement.
The proposed Bilateral Trade Agreement, first outlined in February 2025, aims to more than double bilateral trade from USD 191 billion to USD 500 billion by 2030.
— ANI
