India and the US have agreed on an Interim Trade Framework, moving closer to a full Bilateral Trade Agreement. The focus is on smoother trade, lower barriers, and stronger supply chains.
Key Highlights:
Strengthening supply chains and coordination on investments, exports, and trade practices.
Reduction or removal of tariffs on US industrial and agricultural products.
Support for aircraft parts, metals, automobiles, and pharmaceuticals.
Mutual preferential access with clear rules of origin.
Simplified regulations for medical devices, technology, and farm exports.
Boost in advanced tech, GPUs, data centers, and digital cooperation.
18 percent tariff on selected Indian exports, likely temporary.
Around $500 billion worth of US goods over five years.
What This Means
Trade between India and the US is expected to grow steadily.
Some export sectors may face short-term tariff pressure.
In the long run, manufacturing, pharma, and tech sectors may benefit from deeper integration.
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