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India–USA Interim Trade Agreement (ITA)

📅 Published 09 Feb 2026 · February 2026

India–USA Interim Trade Agreement (ITA)

Why in News?

India and the USA agreed on the framework for an Interim Trade Agreement (ITA) on 7 February 2026, paving the way for a comprehensive Bilateral Trade Agreement (BTA).

Key Highlights

  • India to reduce tariffs on several industrial and agricultural products imported from the USA.
  • USA to impose 18% reciprocal tariff on selected Indian exports.
  • USA to remove security-related tariffs on Indian aircraft and aircraft parts.
  • India plans to purchase USD 500 billion worth of US goods over five years.
  • Expansion of trade in advanced technology products such as GPUs and data-centre equipment.

UPSC Mains

GS-II: India–USA Strategic Relations
GS-III: International Trade, Tariff Policy

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