India-US Trade: Fact Sheet Reveals Strategic Partnership
India-US Trade Deal 2026 Opens Doors for Exporters with Sweeping Tariff Reductions and Digital Trade Rules
Washington has released an extensive fact sheet outlining the “path forward” for the newly concluded India-US Trade Deal 2026, a framework both governments describe as historic and transformative. The announcement comes days after a high-level telephonic discussion between Prime Minister Narendra Modi and US President Donald Trump, during which the two leaders agreed on the structure of an Interim Agreement aimed at deepening trade ties and rebalancing market access.
The agreement marks one of the most consequential developments in bilateral commerce in recent years, promising lower tariffs, expanded market opportunities, and stronger collaboration in technology and economic security.
India-US Trade: Lower Duties Open New Opportunities for Indian Exports
Under the India-US Trade Deal 2026, India is set to gain significantly improved access to American markets. Washington has agreed to reduce duties on a broad spectrum of Indian exports, including textiles and garments, leather and footwear, plastics and rubber products, organic chemicals, artisanal goods, home décor items, and select machinery categories.
Industry leaders expect these reductions to enhance the competitiveness of Indian manufacturers and small-scale exporters, particularly in labour-intensive sectors that employ millions. Trade analysts say the move could also boost regional production clusters and strengthen India’s global value chain participation.
India Offers Tariff Cuts on US Industrial and Agricultural Goods
In return, New Delhi will eliminate or substantially reduce tariffs on American industrial goods as well as a wide range of agricultural and food products. Items slated for tariff relief include dried distillers’ grains, red sorghum used for animal feed, tree nuts, fresh and processed fruits, selected pulses, soybean oil, wine and spirits, and other farm commodities.
Officials say these concessions are intended to expand consumer choice in India while promoting reciprocal access — a key demand from Washington during negotiations.
India-US Trade: Trump Administration Rolls Back Additional Duties
A major element of the India-US Trade Deal 2026 is the rollback of an additional 25% duty previously imposed on Indian imports. President Trump signed an Executive Order formalising the reduction on the same day the framework was finalised.
The White House stated that the decision reflected India’s commitment to align with US economic and strategic objectives, including measures affecting global energy trade. As part of the revised arrangement, reciprocal tariffs will be lowered from 25% to 18%, signalling a move toward what Washington calls a more balanced bilateral trade relationship.
Massive Expansion in Bilateral Purchases and Trade Volumes
The Interim Agreement envisions a sharp rise in India’s imports from the United States. New Delhi aims to purchase goods worth more than $500 billion across multiple sectors such as energy, information and communication technology, agriculture, coal, and additional industrial categories.
Economic observers suggest this increase could reshape supply chains and enhance cooperation in emerging industries, while also helping narrow longstanding trade imbalances.
Digital Trade Reforms and Removal of Non-Tariff Barriers
According to the US fact sheet, the India-US Trade Deal 2026 includes commitments from India to address non-tariff barriers that have historically affected bilateral commerce. Both governments plan to establish rules of origin to ensure that negotiated benefits primarily serve their domestic industries.
The White House also said India intends to end its digital services taxes and pursue ambitious digital trade disciplines. These include reducing discriminatory measures, preventing customs duties on electronic transmissions, and promoting fair regulatory practices for cross-border data flows and online services.
Stronger Economic Security and Technology Cooperation
Beyond tariffs, the agreement emphasises strategic alignment in economic security. Both countries have pledged closer cooperation to strengthen supply chains, encourage innovation, and address non-market policies from third countries. Joint work on investment reviews, export controls, and technology trade is also expected to expand.
Officials anticipate a significant rise in two-way trade in advanced technology products, potentially accelerating collaboration in semiconductors, digital infrastructure, and emerging industries.