Trump announcement a framework pact; joint statement on the details in next 2-3 days

Prime Minister Narendra Modi with Donald Trump (File Photo)

The announcement by US President Donald Trump is a "framework agreement" -- the first stage of the trade agreement, a senior government official told Moneycontrol and a joint statement on the framework agreement is expected in the next 2-3 days, which will detail the broad contours of the deal.

The official further said that after this, a BTA will be discussed, which will include the framework pact. "Right now, the agreement is at leaders' level understanding," said the official.

US President Donald Trump announced the trade deal between India and the US on Truth Social on February 2, saying the agreement would significantly roll back the reciprocal tariffs imposed from mid-2025. As part of the agreement, Trump claimed the US will cut reciprocal tariffs on Indian goods to 18 percent from 50 percent, while duties on American products imported into India are expected to fall to zero.

On the zero duty, the official said that in many cases, India's exports will also be subjected to zero duty.

Meanwhile, another official said that $500 billion announcement (India's commitment to buy US imports annually) will be achieved in the next five years.

"The $500 billion dollar commitment includes the existing pipeline of projects and India has a lot of avenues such as data centres and energy to spend it on. Data centers alone need $20 billion," the official explained.

In his announcement, Trump said that India would buy “over $500 billion dollars of U.S. Energy, Technology, Agricultural, Coal, and many other products."

In FY25, the value of India's imports from stood at $45.33 billion.