The framework, unveiled on February 6th, 2026, revolves around reciprocity, resilience of the supply chain and alignment for strategic direction.
The 12 key principles of the agreement are thus:
1. Massive Reductions of US Tariffs. The US will impose a reciprocal tariff of 18% on goods that originate from India. That is down sharply from the previous peak effective rate of 50%, including punitive tariffs.
2. India’s Promise to the United States Industrial Goods. India has committed to remove or reduce tariffs on any industrial products produced in the US, allowing American machinery products and manufactured products to move into the market smoothly.
3. Market Access for Agriculture from the US. For instance; India will reduce duties on a broad range of US agricultural products including:
- Tree nuts (Almonds, Pistachios, Walnuts)
- Fresh and processed fruits (Apples, Berries)
- Soybean oil, wine, spirits and red sorghum for animal feed.
4. Preferential Treatment of Labor-Intensive Sectors. The 18% tariff rate will immediately benefit India's high employment industries such as textiles, apparel, leather, footwear, and artisanal goods, the economy's global competitiveness is returning to normal.
5. Pivot Away from Russian Energy. India is committed to markedly reducing or even stopping supply of Russian crude oil in its major strategic pivot, rephrasing energy to US shale oil, LNG and coal.
6. Zero-Duty Targets for Main Exports. As soon as the deal comes to fruition, the US intends to pursue zero tariffs on select Indian exports, such as generic drugs, gems and diamonds.
7. Section 232 Disputes: How You Can Resolve Them. Section 232 national security tariffs on Indian aircraft and aircraft component parts will be eliminated by the US. India, in turn, will get a preferential Tariff-Rate quota for Automobile components.
8. Addressing Non-Tariff Barriers. Both countries have committed to address “hidden” trading barriers. India will remove the outdated hurdles that hampers US medical devices and streamline the licensing of ICT (Information and Communication Technology) items.
9. Assessing Standards and Applying Appropriate Testing Alignments within the Framework. Within six months, India has committed itself to deciding whether US-produced or international standards and testing requirements are acceptable for US exports entering specified Indian fields.
10. Sensitive Sectors' Protection. The agreement, which lays down safeguards for India's most sensitive sectors. Items including dairy, GM crops as well as primary staples (wheat, rice) remain generally immune to blanket liberalization in the interests of farmer welfare.
11. Commitment for $500 Billion Purchase. So India aims to purchase about $500 billion in US energy, technology, defense kit, and airplanes over the next five years to offset the trade deficit.
12. Roadmap in full BTA. This temporary framework is not the last stop. It reaffirms the commitment to the wider US-India Bilateral Trade Agreement (BTA) negotiations, which began in February 2025, that will focus on integration in the areas of AI, space, and semiconductors.
