India and USA Agree on Framework for Interim Trade Agreement
On February 7, 2026, India and the United States agreed on a framework for an Interim Trade Agreement (ITA) as a step toward a full Bilateral Trade Agreement (BTA). India will reduce or remove tariffs on industrial goods, agricultural products like Distillers’ Dried Grains (DDGs), Red Sorghum, tree nuts, fruits, soybean oil, wine, and spirits from the USA. The USA will remove security-related tariffs on Indian aircraft and parts, provide quota-based access for auto parts, and review pharmaceuticals. India plans to purchase USD 500 billion worth of US products over five years, including energy, aircraft, technology, precious metals, and coking coal.[1]
Try the question
Which of the following is a key commitment by India under the India-USA Interim Trade Agreement framework?
Answer: (a) Reduce tariffs on US industrial and agricultural goods
The correct answer is (a) Reduce tariffs on US industrial and agricultural goods.