Framework of US trade deals to boost investor confidence, strengthen capital flows and deepen markets: BSE chief

The successful conclusion of an Interim Trade Framework Agreement between India and the US will boost investor confidence, strengthen the foundation for capital flows and deepen market participation as India further integrates with the global economy – directly advancing the vision of Viksit Bharat, said Sundararaman Ramamurthy, MD and CEO of Bombay Stock Exchange (BSE).“The successful conclusion of the India-US Interim Trade Agreement Framework is another feather in the cap for the Government of India led by the Honorable Prime Minister and reflects their ability to build strong, trusted global business partnerships,” a brief statement from the BSE chief said.

The US and India issued a joint statement on Saturday saying they have reached and agreed to a framework for an Interim Agreement on Reciprocal and Mutually Beneficial Trade (Interim Agreement).According to the joint statement, 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, nuts, fresh and processed fruits, soybean oil, wine and spirits, and complementary products.

India had reservations about opening up the entire US agricultural sector to Indian markets, which is why the interim trade deal apparently missed the initially set timeline – fall 2025. The Indian side has assured protection for its sensitive sectors, especially agriculture and dairy, in this deal.

Ishita Mukhopadhyay, senior professor at the Department of Economics, University of Calcutta, noted that the joint document is still very unclear and non-transparent about the goods and services included in the BTA.

“The US has been trying to increase market access in India’s agricultural sector for several years now… Market access in agriculture could push the country’s production away from the market. In any case, that has already been done,” said Ishita Mukhopadhyay.G. Vijay, an associate professor at the University of Hyderabad’s School of Economics, claimed that the joint statement appears to be asymmetrical, with India committing to purchase a certain amount of value of goods from the US, while the US only cuts tariffs to reciprocal rates.

“This appears to have much more to do with geopolitical and security concerns than economic reasons as the US is more dependent on Indian imports than the other way around and it will not be easy for the US industry to deal with the supply chain disruptions,” G Vijay added.

Moreover, according to the joint statement, both countries have decided to address non-tariff barriers affecting bilateral trade. India agrees to address long-standing barriers to trade in U.S. medical devices and eliminate restrictive import licensing procedures that slow or impose quantitative restrictions on market access for U.S. information and communications technology (ICT) goods.

The joint statement also noted that India plans to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five 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.

On February 2, a phone conversation between Prime Minister Narendra Modi and US President Donald Trump led to the announcement of the conclusion of negotiations on the long-awaited trade deal.

The Trump administration had imposed tariffs on major exporters to the US, including India and China. Since August 2025, there has been a 50 percent tariff on goods from India entering the United States. The rates have now been reduced to 18 percent after the leaders’ recent call.

Formally proposed in February 2025, the BTA aims to more than double bilateral trade from the current $191 billion to $500 billion by 2030.