An interim trade agreement between India and the US has been finalized, reducing tariffs on Indian exports from 50% to 18%. This move will benefit Indian exporters, particularly in textiles and diamonds. However, India has not confirmed US claims regarding stopping Russian oil purchases.
On February 7, 2026, an interim trade agreement between India and the United States was finalized, though the final signing is pending. Under this deal, the US has reduced tariffs on Indian exports from 50% to 18%. This will lower duties on goods such as diamonds, silk, textiles, wood, furniture, and jewelry heading to the US, opening access to markets worth up to $113 billion. K.M. Subramanian, president of the Tiruppur Exporters’ Association, stated, “This deal will provide major growth for Tiruppur alone. Over the next 5 years, we expect exports from Tiruppur to double.” Currently, Tiruppur's exports are valued at ₹15,000 crore, with hopes to clear ₹4,000 crore in pending orders.
The Ministry of External Affairs responded to US claims on Russian oil purchases by emphasizing energy security for 1.4 billion citizens as the supreme priority. Spokesperson Randhir Jaiswal said, “Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this.” US President Donald Trump, in an executive order, claimed India committed to stopping Russian oil imports, leading to the removal of a 25% punitive tariff. India neither confirmed nor denied this. Russian oil imports hit a 38-month low in December 2025, while US energy imports grew nearly 31% in the same period.
Experts believe the agreement gives India an edge over competitors like China (35% tariffs), Bangladesh (20%), and Vietnam (20%). Opinions are divided on the influence of Indian-origin Americans; some argue it played little role in the deal. The agreement will particularly benefit small and medium enterprises, fostering job creation in sectors like textiles and manufacturing.
