India, Feb. 8 -- The recent announcement of an India-US trade deal was followed by a joint statement on February 6, confirming a "framework" for an "interim agreement" aimed at reciprocal trade. This joint statement, which highlights both nations' commitment to sign a broader bilateral trade agreement (BTA), contains some key elements that offer a sneak peek into what the interim and final trade agreements might encompass.

First and foremost, the US will reduce the reciprocal tariff rates on Indian goods to 18% and might lower them further during the BTA negotiations. The new tariff rates, while not returning to the previous era of low MFN rates of about 3%, will provide a breather to India's labour-intensive exports, particularly in tex...