India and the US agreed on an 'Interim Trade Agreement' in a joint statement released on February 7. Commerce Minister Piyush Goyal tweeted that the said agreement will open a $30 trillion market for Indian exporters. India is set to drop tariffs on all US industrial goods and on a wide range of farm products. However, the US will apply 18% tariff on Indian goods such as textiles & apparel, leather & footwear, plastic & rubber products.
Although Washington will remove duties on key sectors, including generic pharmaceuticals, gems and diamonds, and aircraft parts. The joint statement was issued following the launch of a Bilateral Trade Agreement (BTA) on February 13, 2025.