**MARKET BRIEF: INDIA-US TRADE AGREEMENT (FEB 2026)** **Executive Summary** Finance Minister Nirmala Sitharaman has robustly defended the newly finalized India-US trade framework, terming it a significant win for domestic manufacturers. The agreement, announced following high-level talks between Prime Minister Narendra Modi and US President Donald Trump, centers on a major reduction in US tariffs on Indian exports. **Key Tariff Adjustments** * **US Import Duties:** Tariffs on Indian goods entering the US have been slashed to **18%**, down from earlier punitive levels that reached as high as **50%** (inclusive of oil-related penalties). * **Indian Commitments:** In reciprocity, India is expected to lower barriers on US industrial goods, with reports indicating a purchase commitment of approximately **$500 billion** over five years across energy, defense, and technology sectors. **Sectoral Shields: Agriculture & Dairy** Government officials, including Commerce Minister Piyush Goyal, have explicitly confirmed that "sensitive sectors" remain ring-fenced. * **Agriculture:** No duty cuts on key farm produce. * **Dairy:** Fully excluded from the deal to protect domestic cooperatives and farmers. * **Zero-Duty Access:** Limited strictly to non-sensitive industrial and technological imports from the US. **Political & Transparency Outlook** The Opposition has criticized the deal's swift finalization, alleging a lack of transparency and voicing fears over "surrender" to US pressure. * **Parliamentary Disclosure:** FM Sitharaman assured that full details are not "closed files" and will be tabled in Parliament via a *suo moto* statement shortly. * **Disruptions:** Recent parliamentary sessions faced adjournments, delaying the immediate release of the official joint statement. **Strategic Impact** This agreement de-escalates a tense 12-month trade standoff characterized by tariff hikes and friction over Russian oil procurement. The reduction to an **18%** uniform tariff is projected to restore competitiveness for Indian exporters in textiles, leather, and engineering goods against regional rivals. **Next Steps** Monitor the upcoming Ministry of Commerce joint statement for the fine print on specific industrial goods gaining zero-duty entry into India.