India-US Trade Architecture
From TIFA to Bilateral Trade Agreement
India and the US have historically lacked a comprehensive trade agreement. Their trade relationship has been governed by the Trade and Investment Framework Agreement (TIFA), which provides a strategic framework for dialogue but is not a binding trade deal. The US withdrew India's Generalized System of Preferences (GSP) benefits in June 2019, removing preferential duty treatment on approximately USD 5.6 billion worth of Indian exports. The February 2026 interim deal is the first substantive bilateral trade agreement between the two countries.
- India-US TIFA: Provides framework for trade dialogue; not a binding trade agreement
- GSP withdrawal (June 2019): Removed preferential duty on USD 5.6 billion of Indian exports; affected pharmaceuticals, textiles, agricultural products, auto parts
- Interim Trade Agreement (February 2026): US tariff reduced from 50% to 18%; India to cut tariffs on US industrial and agricultural goods
- Upon successful conclusion: US to further remove tariffs on generic pharmaceuticals, gems and diamonds, aircraft parts
- Broader Bilateral Trade Agreement (BTA) negotiations to follow, targeting additional market access commitments and supply chain resilience
- Target: USD 500 billion bilateral trade by 2030 (current level: USD 132.2 billion in FY 2024-25)
● Tracked since February 12, 2026 · last seen June 18, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief