On February 7, 2026, India and the US announced a major step toward a bilateral trade agreement under which around USD 44 billion of Indian exports will enter the US market tariff-free once the pact is implemented. Union Commerce Minister Piyush Goyal highlighted that several export categories — from gems & diamonds to pharmaceuticals and smartphones — are set to benefit from zero reciprocal tariffs, bolstering Indian exporters’ competitiveness in the world’s largest economy.

The interim framework, expected to be formalised by mid-March 2026, aims to cut down or eliminate duties on a wide range of goods exported from India to the US, while deepening ties and aligning trade cooperation through mutual tariff reductions. Beyond industrial products, agricultural and food items such as spices, tea, coffee, coconuts, and various fruits and nuts are also included in the zero-tariff list, opening fresh opportunities for farmers and agri-exporters.

Goyal stressed that India has protected sensitive sectors — including dairy and staple crops — from tariff concessions, ensuring farmers and MSMEs remain safeguarded. The deal is seen as a strategic move to expand exports, strengthen economic cooperation, and move closer to a USD 500 billion bilateral trade target by 2030.