The move is expected to ease market access for American shipments entering India. The USTR report further said that India will also address long-standing non-tariff barriers to trade in US food and agricultural products.
“Under the Interim Agreement, India will address long-standing barriers to trade in US medical devices; eliminate restrictive import licensing procedures that delay market access for, or impose quantitative restrictions on, US Information and Communication Technology goods; and determine, with a view towards a positive outcome, within six months of entry into force of the Agreement, whether US- developed or international standards, including testing requirements, are acceptable for the purposes of US exports entering the Indian market in identified sectors,” the report said.
After the launch of negotiations in March 2025, India and the US issued a joint statement almost a year later, on February 7, 2026, outlining the contours of an interim trade agreement. The two sides aimed to sign the deal by March-end. The US removed the 25 per cent punitive tariffs imposed on India and agreed to lower the existing 25 per cent to 18 per cent by the end of February.
However, after the US Supreme Court ruling on February 20 struck down the country-specific tariffs, India is waiting and watching. The negotiating teams are currently taking time to evaluate the situation and its implications. Further meetings are expected to be rescheduled at a mutually convenient date.
According to the USTR report, both countries will work towards finalising the interim agreement with a view to concluding a mutually beneficial bilateral trade agreement (BTA). Despite ‘gaps on sensitive issues’, discussions between both countries aim to expand market access, cut tariff and non-tariff barriers and set new trade rules, while addressing India’s trade surplus.
The US has continued to flag that India has the highest tariff of any major economy, and its use of non-tariff barriers to promote domestic production has also ‘historically restricted US access to the market.’
Through BTA negotiations, USTR is working with India to open the Indian market for US products and reduce its 2025 trade deficit of $58.2 billion. In March 2025, the United States and India finalised the scope of the BTA negotiations, which focus on reducing tariffs, eliminating NTBs, and securing rules-based commitments in several areas to ensure long-term benefits, it said.
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