February 7, 2026
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India-US interim trade agreement cuts tariffs to zero on aircraft parts, boosting aerospace supply chains and large-scale purchases.
The India-US interim trade framework reduces import duties to zero on various goods, including generic pharmaceuticals and aircraft parts, and includes an intent to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over five years. Industry responses emphasise that tariff elimination will strengthen market access, deepen integration with US aerospace supply chains, improve cash flows, and enhance cost competitiveness for Indian suppliers, with Boeing endorsing a zero-for-zero tariff approach for aerospace and defence.