India gets duty free access to US aircraft, aircraft parts under BTA
In a joint statement from the White House, it was stated that India will receive preferential tariff rate quota (TRQ) for automotive parts, subject to the applicable tariff.
India is also expected to get “negotiated outcomes” on generic drugs and ingredients.
ALSO READ: India-US interim trade agreement framework announced: $500 billion worth of goods purchased with cards
“The United States and India are committed to providing each other with preferential market access in relevant sectors on an ongoing basis,” the joint statement said. The statement was included.
In their joint statement, the United States and India announced that they had reached and agreed on an Interim Agreement (interim agreement) on mutual and mutually beneficial trade.
ALSO READ: US lifts 25% tariffs on Indian goods linked to Russian oil purchases The framework reaffirms the countries’ commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support for more resilient supply chains.
According to the joint statement, India will eliminate or reduce tariffs on all US industrial products and a wide range of US food and agricultural products, including dried distillers grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, and supplementary products.
ALSO READ: India-US interim trade agreement framework: Key points
India had reservations about opening up the entire U.S. agricultural sector to Indian markets, so the interim trade deal appears to have missed the originally set timeline of fall 2025. In this agreement, the Indian side provided protection for its sensitive sectors, especially agriculture and dairy products.
Additionally, both countries decided to address non-tariff barriers affecting bilateral trade.
India agrees to eliminate long-standing barriers to trade in US medical devices and eliminate restrictive import licensing procedures that delay market access or impose quantitative restrictions on US Information and Communications Technology (ICT) products.
“Recognizing the importance of working together to resolve long-standing concerns, India also agrees to address long-standing non-tariff barriers to trade in U.S. food and agricultural products,” the joint statement said. The statement was included.
The United States also confirmed that during BTA negotiations it plans to consider India’s request that the United States continue to work to reduce tariffs on Indian goods.
The joint statement also stated that India plans to purchase US$ 500 billion worth of energy products, aircraft and aircraft parts, precious metals, technology products and coking coal from the USA in the next 5 years. India and the US will significantly increase trade in technology products, including Graphics Processing Units (GPUs) and other products used in data centers, and expand joint technology cooperation.
A phone call between Prime Minister Narendra Modi and US President Donald Trump on February 2 led to the announcement of the conclusion of negotiations on the much-anticipated trade deal.
The Trump administration had imposed tariffs on major US exporters, including India and China. Since August 2025, a 50 percent customs duty has been imposed on goods entering the United States from India. After the leaders’ last phone call, tariffs have now been reduced to 18 percent.
Officially proposed in February 2025, the BTA aims to more than double bilateral trade to US$500 billion by 2030 from the current US$191 billion.
