India and the United States are actively working to finalize a comprehensive Bilateral Trade Agreement (BTA), as confirmed by the Ministry of External Affairs on February 20, 2026.
Framework Agreement Highlights
The interim deal slashes US tariffs on Indian goods to 18% from peaks of 50%, removing punitive 25% duties tied to India’s Russian oil purchases. India commits to zero tariffs on US industrial/agricultural products, $500B procurement (energy, tech, coal), and addressing non-tariff barriers.
Supreme Court Impact & New Tariffs
Post SCOTUS striking down Trump’s IEEPA tariffs, a universal 10% levy activates February 24 under Trade Act Section 122. MEA assures India’s framework remains intact, with Trump confirming “no changes” to commitments like energy pivot from Russia.
Strategic Commitments
India pledges market access for US nuts, soybeans, wine; enhanced tech trade (GPUs, data centers); “Buy American” policy. Negotiations target full BTA covering IP, services, procurement, with rules of origin ensuring mutual benefits.
