What is historic about India-USA trade agreement besides U.S.-India defense partnership

U.S. President Donald Trump announced on January 2, 2026 that he had reached a trade deal with India, which includes New Delhi’s agreement to halt purchases of Russian oil and increase its imports from the U.S., and potentially from Venezuela. In a message on Truth Social, he said India would reduce trade barriers to zero. An additional 25% tariff penalty imposed over India’s refusal to stop buying oil from Russia will be dropped. “Delighted that Made in India products will now have a reduced tariff of 18%,” Prime Minister of India Narendra Modi wrote on X thanking Trump. He added, “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.” Notably, the announcement came within a week after India and the European Union announced a trade deal. 

It is noteworthy that during Trump's first term as the US president (2017-2021), India and the US were discussing a mini-trade deal, but it did not materialise. The proposed deal was discussed during multiple-round of talks during July 2018 and September 2019, but no agreement was finalised due to differences on issues like agriculture, digital taxes, and tariffs. But Joe Biden administration (Jan 2021- Jan 2025) did not show interest in negotiating a free trade agreement.

USA-INDIA JOINT STATEMENT
The White House, February 6, 2026

The United States of America (United States) and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement). Today’s framework reaffirms the countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains. The Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes.

Key terms of the Interim Agreement between the United States and India will include:
    India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

    The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended, on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery, and, subject to the successful conclusion of the Interim Agreement, will remove the reciprocal tariff on a wide range of goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements), as amended, including generic pharmaceuticals, gems and diamonds, and aircraft parts.

    The United States will also remove tariffs on certain aircraft and aircraft parts of India imposed to eliminate threats to national security found in Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), as amended; and Proclamation 10962 of July 30, 2025 (Adjusting Imports of Copper Into the United States).  Similarly, consistent with U.S. national security requirements, India will receive a preferential tariff rate quota for automotive parts subject to the tariff imposed to eliminate threats to national security found in Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended.  Contingent on the findings of the U.S. Section 232 investigation of pharmaceuticals and pharmaceutical ingredients, India will receive negotiated outcomes with respect to generic pharmaceuticals and ingredients.

    The United States and India commit to provide each other preferential market access in sectors of respective interest on a sustained basis.

    The United States and India will establish rules of origin that ensure that the benefits of the Agreement accrue predominately to the United States and India. 

    The United States and India will address non-tariff barriers that affect bilateral trade. India agrees to address long-standing barriers to the trade in U.S. medical devices; eliminate restrictive import licensing procedures that delay market access for, or impose quantitative restrictions on, U.S. Information and Communication Technology (ICT) goods; and determine, with a view towards a positive outcome, within six months of entry into force of the Agreement whether U.S.-developed or international standards, including testing requirements, are acceptable for the purposes of U.S. exports entering the Indian market in identified sectors. Recognizing the importance of working together to resolve long-standing concerns, India also agrees to address long-standing non-tariff barriers to the trade in U.S. food and agricultural products.

    For the purposes of enhancing ease of compliance with applicable technical regulations, the United States and India intend to discuss their respective standards and conformity assessment procedures for mutually agreed sectors. 

    In the event of any changes to the agreed upon tariffs of either country, the United States and India agree that the other country may modify its commitments.

    The United States and India will work towards further expanding market access opportunities through the negotiations of the BTA. The United States affirms that it intends to take into consideration, during the negotiations of the BTA, India’s request that the United States continue to work to lower tariffs on Indian goods.

    The United States and India agree to strengthen economic security alignment to enhance supply chain resilience and innovation through complementary actions to address non-market policies of third parties, as well as cooperation on inbound and outbound investment reviews and export controls.

    India intends to purchase $500 billion of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 years. India and the United States will significantly increase trade in technology products, including Graphics Processing Units (GPUs) and other goods used in data centers, and expand joint technology cooperation.

    The United States and India commit to address discriminatory or burdensome practices and other barriers to digital trade and to set a clear pathway to achieve robust, ambitious, and mutually beneficial digital trade rules as part of the BTA.

The United States and India will promptly implement this framework and work towards finalizing the Interim Agreement with a view to concluding a mutually beneficial BTA consistent with the roadmap agreed in the Terms of Reference BTA consistent with the roadmap agreed in the Terms of Reference.

UNITED STATES-INDIA JOINT STATEMENT

February 7, 2026, Press Information Bureau Delhi 

The United States of America (United States) and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement). Today’s framework reaffirms the countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains. The Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes.

Key terms of the Interim Agreement between the United States and India will include:  

India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
    The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended, on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery, and, subject to the successful conclusion of the Interim Agreement, will remove the reciprocal tariff on a wide range of goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements), as amended, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
    The United States will also remove tariffs on certain aircraft and aircraft parts of India imposed to eliminate threats to national security found in Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), as amended; and Proclamation 10962 of July 30, 2025 (Adjusting Imports of Copper Into the United States).  Similarly, consistent with U.S. national security requirements, India will receive a preferential tariff rate quota for automotive parts subject to the tariff imposed to eliminate threats to national security found in Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended.  Contingent on the findings of the U.S. Section 232 investigation of pharmaceuticals and pharmaceutical ingredients, India will receive negotiated outcomes with respect to generic pharmaceuticals and ingredients.
    The United States and India commit to provide each other preferential market access in sectors of respective interest on a sustained basis.
    The United States and India will establish rules of origin that ensure that the benefits of the Agreement accrue predominately to the United States and India. 
    The United States and India will address non-tariff barriers that affect bilateral trade. India agrees to address long-standing barriers to the trade in U.S. medical devices; eliminate restrictive import licensing procedures that delay market access for, or impose quantitative restrictions on, U.S. Information and Communication Technology (ICT) goods; and determine, with a view towards a positive outcome, within six months of entry into force of the Agreement whether U.S.-developed or international standards, including testing requirements, are acceptable for the purposes of U.S. exports entering the Indian market in identified sectors. Recognizing the importance of working together to resolve long-standing concerns, India also agrees to address long-standing non-tariff barriers to the trade in U.S. food and agricultural products.
    For the purposes of enhancing ease of compliance with applicable technical regulations, the United States and India intend to discuss their respective standards and conformity assessment procedures for mutually agreed sectors. 
    In the event of any changes to the agreed upon tariffs of either country, the United States and India agree that the other country may modify its commitments.
    The United States and India will work towards further expanding market access opportunities through the negotiations of the BTA. The United States affirms that it intends to take into consideration, during the negotiations of the BTA, India’s request that the United States continue to work to lower tariffs on Indian goods.
    The United States and India agree to strengthen economic security alignment to enhance supply chain resilience and innovation through complementary actions to address non- market policies of third parties, as well as cooperation on inbound and outbound investment reviews and export controls.
    India intends to purchase $500 billion of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 years. India and the United States will significantly increase trade in technology products, including Graphics Processing Units (GPUs) and other goods used in data centers, and expand joint technology cooperation.
    The United States and India commit to address discriminatory or burdensome practices and other barriers to digital trade and to set a clear pathway to achieve robust, ambitious, and mutually beneficial digital trade rules as part of the BTA.

The United States and India will promptly implement this framework and work towards finalizing the Interim Agreement with a view to concluding a mutually beneficial BTA consistent with the roadmap agreed in the Terms of Reference.

Fact Sheet: The United States and India Announce Historic Trade Deal

The White House, February 9, 2026

ACHIEVING RECIPROCAL TRADE: Last Friday, in a Joint Statement, President Donald J. Trump announced a trade deal between the United States and India that will open up India’s market of over 1.4 billion people to American products. 

• Friday’s Joint Statement follows a call between President Trump and Indian Prime Minister Narendra Modi last week, in which the leaders reached a framework for an Interim Agreement on reciprocal trade and reaffirmed their commitment to broader U.S.-India Bilateral Trade Agreement (BTA) negotiations.  
• Also on the call, President Trump agreed to remove the additional 25% tariff on imports from India in recognition of India’s commitment to stop purchasing Russian Federation oil. Accordingly, the President signed an Executive Order last Friday removing that additional 25% tariff.
• Given India’s willingness to align with the United States to confront systemic imbalances in the bilateral trade relationship and shared national security challenges, the United States will lower the Reciprocal Tariff on India from 25% to 18%.
• The key terms of the Agreement include:
  • India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
  • India intends to buy more American products and purchase over $500 billion of U.S. energy, information and communication technology, coal, and other products. 
  • India will address non-tariff barriers that affect bilateral trade in priority areas. The United States and India will negotiate rules of origin that ensure that the agreed benefits accrue predominately to the United States and India.
  • India committed to negotiate a robust set of bilateral digital trade rules that address discriminatory or burdensome practices and other barriers to digital trade. 
  • The United States and India committed to strengthen economic security alignment to enhance supply chain resilience and innovation through complementary actions to address non-market policies of third parties as well as cooperating on inbound and outbound investment reviews and export controls.
  • The United States and India will significantly increase bilateral trade in technology products and expand joint technology cooperation.

THE PROSPEROUS PATH FORWARD:  President Trump continues to advance the interests of the American people, enhancing market access for American exporters and lowering tariff and non-tariff barriers to protect our economic and national security.

• India has maintained some of the highest tariffs on the United States of any major world economy, with tariffs as high as an average of 37% for agricultural goods and more than 100% on certain autos.
• India also has a history of imposing highly protectionist non-tariff barriers that have banned and prohibited many U.S. exports to India.
• In the coming weeks, the United States and India will promptly implement this framework and work toward finalizing the Interim Agreement with a view to concluding a mutually beneficial BTA to lock in benefits for American workers and businesses.
• In line with the roadmap set out in the Terms of Reference for the BTA, the United States and India will continue negotiations to address the remaining tariff barriers, additional non-tariff barriers, technical barriers to trade, customs and trade facilitation, good regulatory practices, trade remedies, services and investment, intellectual property, labor, environment, government procurement, and trade-distorting or unfair practices of state-owned enterprises.

LIBERATING AMERICA FROM UNFAIR TRADE PRACTICES: President Trump has challenged the assumption that American workers and businesses must tolerate unfair trade practices that have disadvantaged them for decades and contributed to our historic global trade deficit.

• On April 2, 2025, President Trump declared a national emergency in response to the large and persistent U.S. goods trade deficit caused by a lack of reciprocity in our bilateral trade relationships, unfair tariff and non-tariff barriers, and U.S. trading partners’ economic policies that suppress domestic wages and consumption.
• President Trump continues to advance the interests of the American people by removing tariff and non-tariff barriers and expanding market access for American exporters, including in the agricultural sector.
• Today’s announcement provides a tangible path forward with India that underscores the President’s dedication to realizing balanced, reciprocal trade with an important trading partner.

India - U.S. Joint Statement

February 13, 2025, Washington DC

The President of the United States of America, The Honorable Donald J. Trump hosted the Prime Minister of India, Shri Narendra Modi for an Official Working Visit in Washington, DC on February 13, 2025.

2. As the leaders of sovereign and vibrant democracies that value freedom, the rule of law, human rights, and pluralism, President Trump and Prime Minister Modi reaffirmed the strength of the India-U.S. Comprehensive Global Strategic Partnership, anchored in mutual trust, shared interests, goodwill and robust engagement of their citizens.

3. Today, President Trump and Prime Minister Modi launched a new initiative – the "U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century” – to drive transformative change across key pillars of cooperation. Under this initiative, they committed to a results-driven agenda with initial outcomes this year to demonstrate the level of trust for a mutually beneficial partnership.

Defense

4. Highlighting the deepening convergence of U.S.-India strategic interests, the leaders reaffirmed their unwavering commitment to a dynamic defense partnership spanning multiple domains. To advance defense ties further, the leaders announced plans to sign this year a new ten-year Framework for the U.S.-India Major Defense Partnership in the 21st Century.

5. The leaders welcomed the significant integration of U.S.-origin defense items into India's inventory to date, including C‑130J Super Hercules, C‑17 Globemaster III, P‑8I Poseidon aircraft; CH‑47F Chinooks, MH‑60R Seahawks, and AH‑64E Apaches; Harpoon anti-ship missiles; M777 howitzers; and MQ‑9Bs. The leaders determined that the U.S. would expand defense sales and co-production with India to strengthen interoperability and defense industrial cooperation. They announced plans to pursue this year new procurements and co-production arrangements for "Javelin” Anti-Tank Guided Missiles and "Stryker” Infantry Combat Vehicles in India to rapidly meet India’s defense requirements. They also expect completion of procurement for six additional P-8I Maritime Patrol aircraft to enhance India’s maritime surveillance reach in the Indian Ocean Region following agreement on sale terms.

6. Recognizing that India is a Major Defense Partner with Strategic Trade Authorization-1 (STA‑1) authorization and a key Quad partner, the U.S. and India will review their respective arms transfer regulations, including International Traffic in Arms Regulations (ITAR), in order to streamline defense trade, technology exchange and maintenance, spare supplies and in-country repair and overhaul of U.S.-provided defense systems. The leaders also called for opening negotiations this year for a Reciprocal Defense Procurement (RDP) agreement to better align their procurement systems and enable the reciprocal supply of defense goods and services. The leaders pledged to accelerate defense technology cooperation across space, air defense, missile, maritime and undersea technologies, with the U.S. announcing a review of its policy on releasing fifth generation fighters and undersea systems to India.

7. Building on the U.S.-India Roadmap for Defense Industrial Cooperation and recognizing the rising importance of autonomous systems, the leaders announced a new initiative - the Autonomous Systems Industry Alliance (ASIA) - to scale industry partnerships and production in the Indo-Pacific. The leaders welcomed a new partnership between Anduril Industries and Mahindra Group on advanced autonomous technologies to co-develop and co-produce state-of-the-art maritime systems and advanced AI-enabled counter Unmanned Aerial System (UAS) to strengthen regional security, and between L3 Harris and Bharat Electronics for co-development of active towed array systems.

8. The leaders also pledged to elevate military cooperation across all domains – air, land, sea, space, and cyberspace – through enhanced training, exercises, and operations, incorporating the latest technologies. The leaders welcomed the forthcoming "Tiger Triumph” tri-service exercise (first inaugurated in 2019) with larger scale and complexity to be hosted in India.

9. Finally, the leaders committed to break new ground to support and sustain the overseas deployments of the U.S. and Indian militaries in the Indo-Pacific, including enhanced logistics and intelligence sharing, as well as arrangements to improve force mobility for joint humanitarian and disaster relief operations along with other exchanges and security cooperation engagements.

Trade and Investment

10. The leaders resolved to expand trade and investment to make their citizens more prosperous, nations stronger, economies more innovative and supply chains more resilient. They resolved to deepen the U.S.-India trade relationship to promote growth that ensures fairness, national security and job creation. To this end, the leaders set a bold new goal for bilateral trade – "Mission 500” – aiming to more than double total bilateral trade to $500 billion by 2030.

11. Recognizing that this level of ambition would require new, fair-trade terms, the leaders announced plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall of 2025. The leaders committed to designate senior representatives to advance these negotiations and to ensure that the trade relationship fully reflects the aspirations of the COMPACT. To advance this innovative, wide-ranging BTA, the U.S. and India will take an integrated approach to strengthen and deepen bilateral trade across the goods and services sector, and will work towards increasing market access, reducing tariff and non-tariff barriers, and deepening supply chain integration.

12. The leaders welcomed early steps to demonstrate mutual commitment to address bilateral trade barriers. The United States welcomed India’s recent measures to lower tariffs on U.S. products of interest in the areas of bourbon, motorcycles, ICT products and metals, as well as measures to enhance market access for U.S. agricultural products, like alfalfa hay and duck meat, and medical devices. India also expressed appreciation for U.S. measures taken to enhance exports of Indian mangoes and pomegranates to the United States. Both sides also pledged to collaborate to enhance bilateral trade by increasing U.S. exports of industrial goods to India and Indian exports of labor-intensive manufactured products to the United States. The two sides will also work together to increase trade in agricultural goods.

13. Finally, the leaders committed to drive opportunities for U.S. and Indian companies to make greenfield investments in high-value industries in each other’s countries. In this regard, the leaders welcomed ongoing investments by Indian companies worth approximately $7.35 billion, such as those by Hindalco’s Novelis in finished aluminum goods at their state-of-the art facilities in Alabama and Kentucky; JSW in steel manufacturing operations at Texas and Ohio; Epsilon Advanced Materials in the manufacture of critical battery materials in North Carolina; and Jubilant Pharma in the manufacture of injectables in Washington. These investments support over 3,000 high-quality jobs for local families.

Energy Security

14. The leaders agreed that energy security is fundamental to economic growth, social well-being and technical innovation in both countries. They underscored the importance of U.S.-India collaboration to ensure energy affordability, reliability, and availability and stable energy markets. Realizing the consequential role of the U.S. and India, as leading producers and consumers, in driving the global energy landscape, the leaders re-committed to the U.S.-India Energy Security Partnership, including in oil, gas, and civil nuclear energy.

15. The leaders underscored the importance of enhancing the production of hydrocarbons to ensure better global energy prices and secure affordable and reliable energy access for their citizens. The leaders also underscored the value of strategic petroleum reserves to preserve economic stability during crises and resolved to work with key partners to expand strategic oil reserve arrangements. In this context, the U.S. side affirmed its firm support for India to join the International Energy Agency as a full member.

16. The leaders reaffirmed their commitment to increase energy trade, as part of efforts to ensure energy security, and to establish the United States as a leading supplier of crude oil and petroleum products and liquified natural gas to India, in line with the growing needs and priorities of our dynamic economies. They underscored the tremendous scope and opportunity to increase trade in the hydrocarbon sector including natural gas, ethane and petroleum products as part of efforts to ensure supply diversification and energy security. The leaders committed to enhance investments, particularly in oil and gas infrastructure, and facilitate greater cooperation between the energy companies of the two countries.

17. The leaders announced their commitment to fully realize the U.S.-India 123 Civil Nuclear Agreement by moving forward with plans to work together to build U.S.-designed nuclear reactors in India through large scale localization and possible technology transfer. Both sides welcomed the recent Budget announcement by Government of India to take up amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act (CLNDA) for nuclear reactors, and further decided to establish bilateral arrangements in accordance with CLNDA, that would address the issue of civil liability and facilitate the collaboration of Indian and U.S. industry in the production and deployment of nuclear reactors. This path forward will unlock plans to build large U.S.-designed reactors and enable collaboration to develop, deploy and scale up nuclear power generation with advanced small modular reactors.

Technology and Innovation

18. The leaders announced the launch of the U.S.-India TRUST ("Transforming the Relationship Utilizing Strategic Technology”) initiative, which will catalyze government-to-government, academia and private sector collaboration to promote application of critical and emerging technologies in areas like defense, artificial intelligence, semiconductors, quantum, biotechnology, energy and space, while encouraging the use of verified technology vendors and ensuring sensitive technologies are protected.

19. As a central pillar of the "TRUST” initiative, the leaders committed to work with U.S. and Indian private industry to put forward a U.S.-India Roadmap on Accelerating AI Infrastructure by the end of the year, identifying constraints to financing, building, powering, and connecting large-scale U.S.-origin AI infrastructure in India with milestones and future actions. The U.S. and India will work together to enable industry partnerships and investments in next generation data centers, cooperation on development and access to compute and processors for AI, for innovations in AI models and building AI applications for solving societal challenges while addressing the protections and controls necessary to protect these technologies and reduce regulatory barriers.

20. The leaders announced the launch of INDUS Innovation, a new innovation bridge modeled after the successful INDUS-X platform, that will advance U.S.-India industry and academic partnerships and foster investments in space, energy, and other emerging technologies to maintain U.S. and India leadership in innovation and to meet the needs of the 21st century. The leaders also reinforced their commitment to the INDUS-X initiative, which facilities partnerships between U.S. and Indian defense companies, investors and universities to produce critical capability for our militaries, and welcomed the next summit in 2025.

21. The leaders also committed, as part of the TRUST initiative, to build trusted and resilient supply chains, including for semiconductors, critical minerals, advanced materials and pharmaceuticals. As part of this effort, the leaders plan to encourage public and private investments to expand Indian manufacturing capacity, including in the U.S., for active pharmaceutical ingredients for critical medicines. These investments will create good jobs, diversify vital supply chains, and reduce the risk of life-saving drug shortages in both the United States and India.

22. Recognizing the strategic importance of critical minerals for emerging technologies and advanced manufacturing, India and the United States will accelerate collaboration in research and development and promote investment across the entire critical mineral value chain, as well as through the Mineral Security Partnership, of which both the United States and India are members. Both countries have committed to intensifying efforts to deepen cooperation in the exploration, beneficiation, and processing as well as recycling technologies of critical minerals. To this end, the leaders announced the launch of the Strategic Mineral Recovery initiative, a new U.S.-India program to recover and process critical minerals (including lithium, cobalt, and rare earths) from heavy industries like aluminum, coal mining and oil and gas.

23. The leaders hailed 2025 as a pioneering year for U.S.-India civil space cooperation, with plans for a NASA-ISRO effort through AXIOM to bring the first Indian astronaut to the International Space Station (ISS), and early launch of the joint "NISAR” mission, the first of its kind to systematically map changes to the Earth’s surface using dual radars. The leaders called for more collaboration in space exploration, including on long duration human spaceflight missions, spaceflight safety and sharing of expertise and professional exchanges in emerging areas, including planetary protection. The leaders committed to further commercial space collaboration through industry engagements in conventional and emerging areas, such as connectivity, advanced spaceflight, satellite and space launch systems, space sustainability, space tourism and advanced space manufacturing.

24. The leaders underscored the value of deepening ties between the U.S. and Indian scientific research communities, announcing a new partnership between the U.S. National Science Foundation and the Indian Anusandhan National Research Foundation in researching critical and emerging technologies. This partnership builds on ongoing collaboration between the U.S. National Science Foundation and several Indian science agencies to enable joint research in the areas of semiconductors, connected vehicles, machine learning, next-generation telecommunications, intelligent transportation systems, and future biomanufacturing.

25. The leaders determined that their governments redouble efforts to address export controls, enhance high technology commerce, and reduce barriers to technology transfer between our two countries, while addressing technology security. The leaders also resolved to work together to counter the common challenge of unfair practices in export controls by third parties seeking to exploit overconcentration of critical supply chains.

Multilateral Cooperation

26. The leaders reaffirmed that a close partnership between the U.S. and India is central to a free, open, peaceful and prosperous Indo-Pacific region. As Quad partners, the leaders reiterated that this partnership is underpinned by the recognition of ASEAN centrality; adherence to international law and good governance; support for safety and freedom of navigation, overflight and other lawful uses of the seas; and unimpeded lawful commerce; and advocacy for peaceful resolution of maritime disputes in accordance with international law.

27. Prime Minister Modi looks forward to hosting President Trump in New Delhi for the Quad leaders’ Summit, ahead of which the leaders will activate new Quad initiatives on shared airlift capacity to support civilian response to natural disasters and maritime patrols to improve interoperability.

28. The leaders resolved to increase cooperation, enhance diplomatic consultations, and increase tangible collaboration with partners in the Middle East. They highlighted the importance of investing in critical infrastructure and economic corridors to advancing peace and security in the region. The leaders plan to convene partners from the India-Middle East-Europe Corridor and the I2U2 Group within the next six months in order to announce new initiatives in 2025.

29. The US appreciates India’s role as a developmental, humanitarian assistance and net security provider in the Indian Ocean Region. In this context, the leaders committed to deepen bilateral dialogue and cooperation across the vast Indian Ocean region and launched the Indian Ocean Strategic Venture, a new bilateral, whole-of-government forum to advance coordinated investments in economic connectivity and commerce. Supporting greater Indian Ocean connectivity, the leaders also welcomed Meta’s announcement of a multi-billion, multi-year investment in an undersea cable project that will begin work this year and ultimately stretch over 50,000 km to connect five continents and strengthen global digital highways in the Indian Ocean region and beyond. India intends to invest in maintenance, repair and financing of undersea cables in the Indian Ocean, using trusted vendors.

30. The leaders recognized the need to build new plurilateral anchor partnerships in the Western Indian Ocean, Middle East, and Indo-Pacific to grow relationships, commerce and cooperation across defense, technology, energy and critical minerals. The leaders expect to announce new partnership initiatives across these sub-regions by fall of 2025.

31. The leaders also resolved to advance military cooperation in multinational settings to advance global peace and security. The leaders applauded India’s decision to take on a future leadership role in the Combined Maritime Forces naval task force to help secure sea lanes in the Arabian Sea.

32. The leaders reaffirmed that the global scourge of terrorism must be fought and terrorist safe havens eliminated from every corner of the world. They committed to strengthen cooperation against terrorist threats from groups, including Al-Qa’ida, ISIS, Jaish-e Mohammad, and Lashkar-e-Tayyiba in order to prevent heinous acts like the attacks in Mumbai on 26/11 and the Abbey Gate bombing in Afghanistan on August 26, 2021. Recognizing a shared desire to bring to justice those who would harm our citizens, the U.S. announced that the extradition to India of Tahawwur Rana has been approved. The leaders further called on Pakistan to expeditiously bring to justice the perpetrators of the 26/11 Mumbai, and Pathankot attacks and ensure that its territory is not used to carry out cross-border terrorist attacks. The leaders also pledged to work together to prevent proliferation of weapons of mass destruction and their delivery systems and to deny access to such weapons by terrorists and non-state actors.

People to People Cooperation

33. President Trump and Prime Minister Modi noted the importance of advancing the people-to-people ties between the two countries. In this context, they noted that the more than 300,000 strong Indian student community contributes over $8 billion annually to the U.S. economy and helped create a number of direct and indirect jobs. They recognized that the talent flow and movement of students, researchers and employees, has mutually benefitted both countries. Recognizing the importance of international academic collaborations in fostering innovation, improving learning outcomes and development of a future-ready workforce, both leaders resolved to strengthen collaborations between the higher education institutions through efforts such as joint/dual degree and twinning programs, establishing joint Centers of Excellence, and setting up of offshore campuses of premier educational institutions of the U.S. in India.

34. Both leaders emphasized that the evolution of the world into a global workplace calls for putting in place innovative, mutually advantageous and secure mobility frameworks. In this regard, the leaders committed to streamlining avenues for legal mobility of students and professionals, and facilitating short-term tourist and business travel, while also aggressively addressing illegal immigration and human trafficking by taking strong action against bad actors, criminal facilitators, and illegal immigration networks to promote mutual security for both countries.

35. The leaders also committed to strengthen law enforcement cooperation to take decisive action against illegal immigration networks, organized crime syndicates, including narco-terrorists human and arms traffickers, as well as other elements who threaten public and diplomatic safety and security, and the sovereignty and territorial integrity of both nations.

36. President Trump and Prime Minister Modi pledged to sustain high-level engagement between our governments, industries, and academic institutions and realize their ambitious vision for an enduring India-U.S. partnership that advances the aspirations of our people for a bright and prosperous future, serves the global good, and contributes to a free and open Indo-Pacific.

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Chronology 

 February, 13, 2025: A joint statement stated that Prime Minister Narendra Modi and US President Donald Trump agreed to deepen the US-India trade relationship.

To this end, the leaders set a bold new goal to more than double bilateral trade to USD 500 billion by 2030 from the current over USD 191 billion.

They announced plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall of 2025.

March 4-6: Commerce and Industry Minister Piyush Goyal visits Washington DC.

Holds bilateral meetings with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick.

April 2, 2025: US President Donald Trump announced an additional import duty of 26 per cent (10 per cent baseline tariff and 16 per cent reciprocal tariff) on Indian goods.

April 9, 2025: The US suspends the 26 per cent reciprocal tariff on Indian goods for 90 days (until July 9, 2025).

April 23-29, 2025: Then Indian chief negotiator Rajesh Agrawal (now Commerce Secretary) visits Washington for the first in-person meeting with US counterparts for a proposed trade pact.

They discussed terms of references covering 19 chapters, including tariffs, non-tariff barriers and customs facilitation.

May 17-20, 2025: Commerce and Industry Minister Piyush Goyal visited Washington and met USTR Greer and US Commerce Secretary Howard Lutnick.

June 4-10, 2025: A US delegation, led by the Additional US Trade Representative Brendan Lynch, visits India for week-long discussions.

Talks cover market access, digital trade, customs facilitation, sanitary and phytosanitary measures, technical barriers to trade, and the legal framework.

June 26, 2025: An Indian delegation, led by Agarwal, again visited Washington for the next round of talks to bridge differences before the July 9 deadline.

June 27, 2025: US President Donald Trump said America is going to have a "very big" trade deal with India.

July 31, 2025: The US announced a 25 per cent duty to be effective from August 7, 2025 (9.30 am IST).

Aug 6, 2025: Trump slapped an additional 25 per cent tariff on goods coming from India as penalty for New Delhi's continued purchase of Russian oil.

After this order, the total tariff on Indian goods, barring a small exemption list, rose to 50 per cent.To be effective from August 27, 2025.

Sep 16, 2025: Officials from the office of United States Trade Representative held discussions in India on various aspects of the trade deal, and it was decided to intensify efforts in this regard.

Sep 22, 2025: Goyal visited New York for trade talks.He was accompanied by Agrawal.

Oct 15-17, 2025: Indian team in Washington for talks. Till now formal six rounds of talks have been held.

Dec 10, 2025: A delegation led by Deputy US Trade Representative (USTR) Rick Switzer in the national capital for two-day trade talks with his Indian counterpart Rajesh Agrawal.

Jan 12, 2026: US Ambassador to India Sergio Gor asserted that both sides are actively engaged to firm up a trade deal.

Jan 31, 2026: When asked about the progress of the 'father of all deals', Goyal said India is working towards closing it with the US "quickly", as good negotiations are happening.

Feb 2, 2026: India and the US agreed on a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.