Trade deal between India and America
The White House released a fact sheet on February 10, 2026, stating that a historic trade agreement has been announced between the US and India. This information is based on the joint statement issued by Donald Trump. Fact sheet is basically a document which contains all the necessary information related to a trade or fund.
According to the fact sheet released by the US, this joint statement comes after recent talks with Prime Minister Modi, in which the two leaders agreed to the framework of an interim agreement on reciprocal trade and reiterated their commitment to continue negotiations on a comprehensive bilateral trade agreement, which also included tariff reduction and market opening.
What did America announce?
According to the White House, America has decided to remove the additional 25% tariff imposed on India. With this, the reciprocal tariff applicable to India will be reduced from 25% to 18%. This decision has been taken in view of certain policy commitments by India, as mentioned in the fact sheet.
Key points of agreement
- India will eliminate or reduce tariffs on many American industrial products and agricultural and food products.
- India has pledged to purchase energy, IT, agriculture, coal and other products from America on a large scale.
- Both countries will work on removing non-tariff barriers.
- A commitment has been made to remove digital service tax and negotiate on rules related to digital trade.
- It has been agreed to increase economic security cooperation in the fields of supply chain, technology and investment.
Why is this important?
The White House has said that there have been high tariffs and stringent non-tariff restrictions on American products in India for a long time. Through this agreement, America’s objective is to ensure better access to the Indian market for American exporters. The aim is to reduce tariff and non-tariff barriers and establish mutual balance in trade. The fact sheet also said that work will be done in the coming weeks to implement this framework and finalize the interim agreement, leading to a comprehensive US-India bilateral trade agreement.
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