Under the terms of the interim framework, India would reduce or eliminate tariffs on a range of US industrial goods and agricultural products, including dried distillers' grains, animal feed sorghum, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.

The joint statement from both countries said the US has agreed to apply a reciprocal tariff rate of 18% on Indian goods such as textiles, leather and footwear, plastics, rubber products, organic chemicals, home décor, artisanal items and certain machinery. If the interim agreement is finalised, the tariff could be removed on other items identified in a potential tariff adjustments annex.

There has been no mention of auto trade in the joint statement. Auto component exports from India to the US now carry a tariff of around 25%. About 55% of India's auto component exports to the US, mainly car parts, were covered under Section 232 tariffs.

While commercial vehicle and off-highway parts were hit by additional reciprocal tariffs that pushed duties as high as 50% in some cases, a clarification issued on November 1 rolled these higher rates back, bringing all these categories under a single 25%, which is now applied uniformly to Indian auto component exports to the US.

The two countries have agreed on a set of terms for an Interim Agreement on reciprocal and mutually beneficial trade, reaffirming their commitment to wider negotiations on a full US-India Bilateral Trade Agreement (BTA), according the release from the government.

Both countries agreed to work toward establishing rules of origin that ensure benefits mainly accrue to the US and India, and to cooperate on standards and regulatory procedures for sectors agreed under the interim pact.

The statement said India intends to purchase U.S. energy products, aircraft and technology goods worth an estimated $500 billion over the next five years. Both sides also pledged to expand trade in technology products, including graphics processing units, and strengthen cooperation on digital trade rules.