India led by Prime Minister Modi accelerates economic cooperation through a new trade partnership framework with the United States

SmartContractPhobia · 2026-02-22T16:04:43+00:00

In early February, the White House announced a new trade cooperation framework between the US and India, symbolizing a significant step in their economic relations. Under this agreement, India will reduce tariffs on American products, while the US will impose reciprocal tariffs on Indian imports, reflecting both countries' industrial structures and strategic commitments.

SmartContractPhobia

2026-02-22 16:04:43

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In early February, the White House announced the establishment of a new trade cooperation framework that brings mutual benefits between the United States and India. This historic agreement symbolizes a step forward in the economic relationship between the two countries. The framework, launched in mid-February 2025 by Prime Minister Modi and U.S. President Trump, demonstrates a strong commitment to broader bilateral trade negotiations.

Mutual Expansion of Market Access as the Focus of Discussions

The most notable feature of this new agreement framework is the reaffirmation that both countries will provide preferential market access in areas of mutual interest. Under Prime Minister Modi’s leadership, India’s industrial sector has been opened to strengthen its foothold in international markets. Both nations have committed to continuously working towards expanding access to more markets.

Details of India’s Tariff Elimination and U.S. Countermeasures

In the implementation phase of the cooperation framework, India will eliminate or reduce tariffs on a range of U.S. industrial products and food and agricultural items. Meanwhile, the U.S. will transition to a system imposing an 18% reciprocal tariff on imports from India. This tariff coverage includes textiles and apparel, leather and footwear, plastics and rubber products, organic chemicals, home decor, crafts, and certain machinery.

These reciprocal measures reflect adjustments based on the industrial structures and comparative advantages of both countries, and are also aligned with Prime Minister Modi’s “Make in India” policy. The economic partnership between the two nations is positioned not as a temporary cooperation but as a preparatory stage for deeper future relations.

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