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On the India-US Framework Agreement

Broad Understanding And The Receptiveness Of D.C. Means That There’s Very Little Possibility Of Last Minute Surprises Or Trump Rescinding

Expecting A Massive Jump In Exports In Certain Quarters That Will Boost India-US Trade Exponentially, Will Reach $500 Bn In 5-6 Years

Deal Allows Indian Producers To Unlock World’s Major Consumer Market With 10 Times The Per Capita Income Of Indians

Russian Oil Issue Is Not A Deal Breaker And Will Not Assume The Proportions Of One

India Will Uptake US High Value Goods But Talk Of This Resulting In The Ballooning Of Trade Deficit In US Favour Misses The Mark As It Ignores How The Deal Guarantees Exponential Growth For Indian Exporters

US Non-trade Barriers Are Not Impositions And Will Not Undermine Our Strategic Business Sovereignty

India’s Department of Commerce says:

The India–US Trade Deal ensures full protection for Indian farmers, with no entry granted for vegetables.The India–US Trade Deal ensures full protection for Indian farmers, with no entry granted for vegetables. Dried vegetables, beans and pulses, as well as roots and tubers such as potatoes and sweet potatoes remain excluded, with no concessions extended.

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— Dept of Commerce, GoI (@DoC_GoI) February 7, 2026

India will soon be the world’s third-largest economy, Piyush Goyal says. By 2047, India’s economy will be over $30 trillion.

We have been able to balance farmers’ sensitivities by fully protecting and ensuring exemptions for GM food products, cereals, millets, dairy, meat, animal foods, honey, malt, ethanol for fuel, starch, Goyal says.

The trade deal open huge opportunities for India to get high-quality medical devices, machinery, ICT products, goods for data centres.

The US will cut tariffs on India to 18% from 50% earlier, opening up a $30 trillion market for Indian exporters, especially small businesses, farmers, and fishermen.

hereMy preliminary view on the Joint Statement on Tariffs:

The Joint Statement issued by India and the US makes it clear that no Bilateral Trade Agreement (BTA) has been reached.

It is not even an Interim Agreement. It is a ‘framework for an interim agreement’.

Paragraph 2 and…

— P. Chidambaram (@PChidambaram_IN) February 7, 2026

Kanwal Sibal criticises US monitoring of Indian Russian oil imports in the India-US trade deal, calling it political bullying and warning of diplomatic issues with Russia.

here

Energy products, aircraft, aircraft parts, precious metals, tech goods, and coking coal — worth up to $500 billion over five years.

The US will cut tariffs on India to 18% from 50% earlier, opening up a $30 trillion market for Indian exporters, especially small businesses, farmers, and fishermen.

here

White House order makes removal of extra 25% tariff on Indian goods effective from 12:01 am EST on February 7.

Piyush Goyal outlined the India–US interim trade framework, promising zero duties on key imports, protection for sensitive sectors, and boosted exports, aiming for $500 billion bilateral trade.

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Arunachal Pradesh Chief Minister Pema Khandu said the IndiaUS interim trade framework will make Indian businesses more competitive in global markets.

The framework for an interim trade agreement between India and the US sends a strong signal of confidence to global investors and offers a timely boost to competitiveness, technology access, and supply chain resilience, India Inc said on Saturday.

Avinash Gupta, Vice Chairman of the All India Gem and Jewellery Domestic Council (GJC), welcomed the India–US interim trade agreement’s provision that eliminates tariffs on gems and diamonds.

Gupta said the zero-duty access is particularly beneficial for small and medium enterprises (SMEs) and family-run businesses, allowing them to compete on equal footing in the US market. He noted that the move is expected to boost exports, strengthen revenues, and create employment opportunities across the sector.

He added that while finished jewellery continues to attract an 18% duty, the agreement opens the door for broader opportunities and a multiplier effect across allied industries, including logistics, design, and retail. Gupta described the development as both an economic and social milestone, empowering communities nationwide.

The All India Gem and Jewellery Domestic Council (GJC) has welcomed the India–US interim trade agreement provision that sets tariffs on gems and diamonds to zero.

Mr. Rajesh Rode, Chairman of GJC, said the development marks a “landmark agreement” and thanked Prime Minister Narendra Modi and Commerce Minister Piyush Goyal for their leadership in securing the concession.

According to Rode, the zero-duty access to the US market strengthens India’s global competitiveness, boosts margins for exporters, and ensures that the work of Indian artisans reaches international markets at fair prices.

He added that while jewellery continues to attract an 18% tariff, the benefits for gems and diamonds are significant, positioning Indian craftsmanship as a “global symbol of excellence” and creating new opportunities for exporters and the domestic gem and jewellery sector.

According to Nitin Khanna, Founder of Kingsway Accessories, recent trade moves and policy shifts are set to have a tangible impact on India’s automotive and EV ecosystem — and even on the aftermarket business that supports it.

Khanna said that Budget 2026 and the proposed India–EU Free Trade Agreement (FTA) are not just policy documents but decisions that will influence consumer choices, from the kind of cars Indians buy to how they personalise and protect them.

He argued that India appears to be pursuing a twin strategy: strengthening domestic manufacturing within the EV value chain while selectively opening doors to premium European imports. In his view, this calibrated approach is likely to push up standards of quality, design and innovation across India’s auto accessories market.

India will soon be the world’s third-largest economy, Goyal says. By 2047, India’s economy will be over $30 trillion.

We have been able to balance farmers’ sensitivities by fully protecting and ensuring exemptions for GM food products, cereals, millets, dairy, meat, animal foods, honey, malt, ethanol for fuel, starch, Goyal says.

The trade deal open huge opportunities for India to get high-quality medical devices, machinery, ICT products, goods for data centres.

US and India are strategic partners and allies and are part of PAX Silica as well, Goyal says, as well as working to develop alternate sources for uninterrupted supply.

We need ICT products, AI equipment, Nvidia chips, products for data centres, Goyal says.

US has innovation and technology superior to any country, but many products aren’t able to compete in world markets due to high labour cost, Goyal says.

Collaboration with friendly countries like India will be complementary in approach, Goyal adds.

India to reduce duties to zero on those imports from the US on which it is already import-dependent, Goyal says.

Distilled grain soluble will see limited import from the US as per demands of our poultry and animal husbandry sector, according to Goyal.

Some wines and spirits have been opened up for imports subject to Minimum Import Price to avoid competition with local players, Goyal adds.

Farmers, textile and footwear workers, toy industry, sports goods industry will benefit from increased access to the US market at lower duties than competitors, Goyal says.

Home decor, silk products, pillows, cushions, non-electrical lamps, machinery parts, jewellery, leather and footwear, textiles and apparel to benefit in exports, Goyal adds.

Vegetables, bananas, barley, bakery products, cocoa products, sesame, poppy seeds, citrus products, jams will face zero tariffs in the US, Goyal says.

Exports from India like machinery parts, aircraft parts, elementary auto parts, coins, platinum, essential oils, home decor items, inorganic compounds, paper, plastic, natural rubber will benefit from zero reciprocal tariffs.

Indonesia, Bangladesh, Vietnam will face higher tariffs than India now, Goyal says.

Several Indian exports will face zero duty in the US, spanning across gems, diamonds, pharmaceutical products and smartphones.

Spices, tea, coffee, copra, vegetable wax, areca, chestnut, cashews, several fruits and vegetables exported from India to the US will also face zero duties, Goyal says.

Interests of our exporters and farmers have been protected, Goyal says. The India-US joint statement has been welcomed across the country and sectors.

50% reciprocal tariffs on India’s exports will drop to 18%, Goyal says. It will be lesser than India’s export competitors.

Talks began in February 2025 for a deal aimed at $500 billion yearly bilateral trade between India and the US, says Piyush Goyal in a press conference.

The interim US-India trade deal should give Indian consumers a clearer edge in the coming years, with easier access to a wider range of cheaper American products in premium categories, like advanced tech items (GPUs and data-centre equipment), certain foods and drinks (tree nuts, wines, spirits), and medical devices, said Suresh Nair, Indirect Tax Partner, Consumer Products and Retail Sector, EY India.

Prices in Indian stores should ease lower for several premium and imported items with this interim US-India trade deal, Nair said.

Trade expert Abhijit Das urges caution on the India-US interim trade deal, noting tariff cuts benefit textiles and gems but uncertainty under President Donald Trump remain key risks.

Former diplomat Ashok Sajjanhar has raised concerns over the provision in the India–US interim trade framework that links tariff relief to India curbing purchases of Russian oil, saying it could have diplomatic and domestic implications for India.

The India–US interim trade framework is likely to have uneven but meaningful effects across Indian retail, consumer prices and sourcing strategies, according to Suresh Nair, Indirect Tax Partner (Consumer Products & Retail), EY India.

Prices, margins and what shoppers may see

Nair expects retail prices for several premium and imported categories to soften over time. This is largely because India has agreed to cut or eliminate tariffs on all US industrial goods and ease key non-tariff barriers.

Products likely to become more affordable include high-end electronics, ICT equipment, wines and spirits, tree nuts, processed fruits and medical devices.

In the near term, large organised retailers may be able to retain part of these cost savings, helping them protect or slightly improve margins while also driving higher sales volumes as middle-class demand rises.

The recently announced India-US interim trade framework marks an end to a period of “coldness” in bilateral relations, according to Vikas Khemani, Founder of Carnelian Asset Management.

Jayant Dasgupta warns that despite India and US announcing an interim trade framework and tariff rollback, major gaps and uncertainties remain, with legal and geopolitical risks threatening the deal.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.