India-US Interim Trade Framework: Tariffs Cut, New Opportunities Emerge

• The US and India unveiled an interim trade framework, reducing tariff barriers and expanding cooperation in technology, energy, and defense.
• The framework is a critical step towards a broader Bilateral Trade Agreement (BTA), resolving friction over India's Russian energy purchases.
• US tariffs on Indian goods will be significantly reduced to 18%, down from up to 50%, with removal of Section 232 tariffs on aircraft parts.
• India will cut tariffs on US industrial goods, agricultural products, and commit to purchasing $500 billion worth of US goods over five years.
• Sensitive agricultural products like maize, wheat, rice, and dairy are protected, while pharmaceuticals remain an area for future negotiation.