On Tuesday, February 10, 2026, Union Minister for Commerce and Industry Piyush Goyal signaled a significant warming of bilateral ties during a welcome reception for the newly appointed US Ambassador to India, Sergio Gor. The meeting, held at the US Embassy in New Delhi, comes just days after the announcement of a historic interim trade framework that aims to resolve months of “Maximum Pressure” tariff escalations.
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“Confident that the India-US partnership will reach newer heights with the #IndiaUSTradeDeal,” Goyal noted, emphasizing that the agreement is the first step toward a comprehensive Bilateral Trade Agreement (BTA).
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Ambassador Sergio Gor: A New Era of Diplomacy
Ambassador Sergio Gor, a key figure in President Trump’s inner circle, officially presented his credentials on January 14, 2026. His arrival has accelerated trade talks that were previously stalled.
The “Real Friends” Doctrine: In his arrival speech, Gor echoed the sentiment that “real friends can disagree but always resolve their differences,” referring to the recent 25% “penal tariffs” that were lifted following India’s pivot away from Russian oil.
Economic Security: The Ambassador’s mission is centered on aligning the world’s oldest and largest democracies against systemic trade imbalances and shared national security challenges.
The 18% Reset: Breaking Down the Interim Trade Deal
The interim framework, declared on February 7, 2026, replaces the previous “penal” tariff regime with a more balanced structure.
Reciprocal Tariffs: The US will now apply a stabilized 18% reciprocal tariff on select Indian goods, including textiles, apparel, leather, and organic chemicals. This is a significant drop from the 50% peaks seen in late 2025.
Zero-Duty Access: In return for Indian concessions, the US has signaled a pathway to zero-duty treatment for Indian generic pharmaceuticals, gems, and aircraft parts, pending the finalization of the full BTA.
The $500B Commitment: As a pillar of this deal, India intends to source $500 billion in American energy, information technology (GPUs), and civil aviation products over the next five years.
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Beyond Tariffs: Digital Trade and Supply Chains
The deal is not merely about the price of goods; it addresses the “invisible barriers” that have hampered trade for years.
Digital Trade: India has agreed to remove its Digital Services Taxes (DST) and is working with the US to prohibit customs duties on electronic transmissions.
Supply Chain Resilience: Both nations are coordinating on export controls and investment reviews to reduce dependency on “non-market economies” (third-party countries).
Standardization: The agreement seeks to align standards for medical devices and ICT goods, simplifying the compliance process for exporters on both sides.
High-Stakes Investment: The Goyal-Kravis Meeting
Parallel to the diplomatic reception, Minister Goyal held a strategic meeting on Monday with Henry Kravis, Co-Founder of the global investment giant KKR.
Investor Confidence: The discussions centered on India’s “strong, reform-driven growth trajectory.” KKR, which already has a massive footprint in India’s tech and retail sectors (including Reliance Retail), is looking to expand its long-term holdings.
Policy Certainty: Goyal assured global investors that the recent trade deals and domestic reforms provide the “policy certainty” required for multi-billion dollar capital infusions.
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[INDIA-US INTERIM TRADE DEAL SUMMARY]
| Category | Status / Impact | Key Detail |
| US Reciprocal Tariff | 18% | Applies to textiles, leather, and chemicals. |
| Russian Oil Penalty | Lifted | 25% surcharge removed as of Feb 7, 2026. |
| India’s Agri Concession | Limited Access | Lower duties on US wine, spirits, and nuts. |
| Sensitive Sectors | Protected | Indian dairy and rice remain excluded. |
| Tech Cooperation | Expanded | Increased trade in GPUs and Data Center hardware. |
Next Steps
The formal signing of the legal text for the Interim Agreement is expected by mid-March 2026. You should monitor the Ministry of Commerce & Industry’s notifications for the specific list of HS Codes that will immediately transition to the 18% rate. Furthermore, if you are an investor, watch for KKR’s upcoming quarterly filings, which may reveal new “high-conviction” capital deployments in India’s digital infrastructure.
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