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In a significant boost for Indian exporters, the US has reduced tariffs on labor-intensive goods, including textiles and footwear, from 50% to 25%, with a further reduction to 18% anticipated next week. This tariff rollback, effective February 7, 2026, is contingent upon India's commitment to cease purchasing Russian oil, as outlined in an executive order by President Donald Trump. In a reciprocal gesture, India will eliminate import duties on Harley-Davidson motorcycles and reduce tariffs on various American industrial and agricultural products. India plans to import $500 billion worth of US goods over the next five years, while protecting sensitive sectors like dairy. The interim trade agreement, expected to be finalized by March, aims to eliminate tariffs on approximately $44 billion of Indian exports, although certain goods will remain subject to existing duties due to national security concerns. Both nations are committed to addressing long-standing trade barriers. 
Published: Feb 07 2026, 8 pmeznews.inThe Indian auto industry is expected to experience minimal impact from the recent US-India trade deal, according to industry sources. The agreement will see import duties on Harley Davidson motorcycles in the 800-1600 cc range reduced to zero from the outset, while duties on internal combustion engine vehicles over 3,000 cc will decrease to 30% over ten years, starting with a 50% reduction in the first year. Other high-end motorcycles will also benefit from reduced duties, though not to the same extent as Harley Davidson. The Automotive Component Manufacturers Association of India (ACMA) welcomed the deal, highlighting its potential to enhance export competitiveness and strengthen supply chains. However, analysts noted that the deal may have limited effects on Harley Davidson, as motorcycles are often imported from Thailand, where lower duties apply due to existing trade agreements. The interim agreement represents a strategic shift from India's recent FTAs with the EU and UK.
Published: Feb 07 2026, 8 pmeznews.inThe Income Tax Department has proposed significant reforms in the Draft Income-tax Rules, 2026, aiming to streamline compliance for taxpayers. The new rules, set to take effect on April 1, will reduce the number of regulations by approximately 35% and cut the number of forms from 399 to 190. The Central Board of Direct Taxes (CBDT) emphasized the standardization of information across forms to ease the compliance burden, introducing features for automated reconciliation and pre-filling to enhance user experience. Notable changes include the rationalization of outdated perquisite thresholds, aligning the tax framework with modern economic conditions. Additionally, the definition of an accountant for certification purposes has been revised, now requiring a minimum of ten years of experience and specific revenue thresholds. Stakeholders have 15 days to provide feedback before the finalization of these subordinate legislations.
Published: Feb 07 2026, 7 pmeznews.inIndia and the US are set to sign a bilateral trade agreement by mid-March, allowing approximately $44 billion worth of Indian exports to enter the US market at zero reciprocal tariffs. Commerce and Industry Minister Piyush Goyal announced that the interim agreement will see the US reduce tariffs on Indian goods from 50% to 18%, while India will eliminate or lower import duties on a range of US industrial and agricultural products. This deal aims to enhance bilateral trade, which reached $186 billion in 2024-25, and is expected to help achieve a target of $500 billion by 2030. The agreement will particularly benefit labour-intensive sectors such as textiles and agriculture, while sensitive sectors like dairy and certain fruits will remain protected. Goyal emphasized the potential for growth in emerging areas like artificial intelligence and quantum computing, providing significant opportunities for Indian farmers, fishermen, and industries.
Published: Feb 07 2026, 6 pmeznews.inBoeing is significantly expanding its operations in India, viewing the country as a crucial market and potential hub for original equipment manufacturing (OEM) of aircraft parts. Commerce and Industry Minister Piyush Goyal announced that Boeing, which currently operates over 265 commercial and military aircraft in India, is a major buyer of Indian aircraft components, with annual sourcing exceeding $1.25 billion from more than 325 suppliers. This development comes alongside an interim trade agreement between the US and India, which includes the removal of tariffs on certain aircraft and parts. Goyal noted that both Boeing and Airbus are keen to enhance their partnerships with India, with Airbus targeting a rise in its sourcing from $1.4 billion to $2 billion by 2030. The growing collaboration underscores the strengthening ties between the US and India in the aerospace sector.
Published: Feb 07 2026, 5 pmeznews.inIndia's former G20 Sherpa and ex-NITI Aayog CEO Amitabh Kant announced on Saturday that the newly established interim trade agreement with the US will enhance India's competitive position against countries like Vietnam and Bangladesh while safeguarding its agriculture and dairy sectors. The agreement significantly reduces US tariffs on Indian goods from 50% to 18%, creating substantial opportunities for Indian exporters in sectors such as textiles, pharmaceuticals, and footwear. Kant described the deal as a strategic victory that bolsters supply chains against China and stabilizes the Indian Rupee, crediting Prime Minister Modi and Commerce Secretary Rajesh Agrawal for their leadership. The framework, announced on February 6, reaffirms the commitment to broader Bilateral Trade Agreement negotiations initiated in 2025, which aim to enhance market access and support resilient supply chains. The US will also eliminate tariffs on certain aircraft parts from India, addressing national security concerns.
Published: Feb 07 2026, 3 pmeznews.inThe Indian Coast Guard has successfully dismantled an international oil-smuggling syndicate in a significant operation conducted approximately 100 nautical miles west of Mumbai on February 5-6. Utilizing advanced maritime surveillance technology, the Coast Guard intercepted three vessels engaged in the illicit trade, which involved transferring low-cost oil sourced from conflict zones in international waters to evade customs duties. The operation was triggered by the detection of a suspicious motor tanker within India's Exclusive Economic Zone, leading to a detailed investigation that revealed a network of handlers operating across multiple countries. Following thorough inspections and interrogations, the Coast Guard confirmed the vessels' involvement in illegal activities. The apprehended vessels are being escorted to Mumbai for further legal action, with ownership linked to foreign entities. This operation highlights India's commitment to maritime security and its enforcement of international maritime laws.
Published: Feb 07 2026, 3 pmeznews.inUnion Minister for Information and Broadcasting and Railways Ashwini Vaishnaw announced the launch of India Semiconductor Mission 2.0, which aims to enhance indigenous chip design and production capabilities while attracting ecosystem partners and developing talent. Speaking at a Qualcomm event, Vaishnaw emphasized that the initiative will prioritize design companies and startups, aspiring to cultivate innovation akin to that of Qualcomm in India. The government plans to establish semiconductor manufacturing plants capable of producing chips as small as 2 nanometres. Vaishnaw highlighted the importance of integrating equipment, chemical, and gas manufacturers into the semiconductor ecosystem. Additionally, he noted the successful creation of a talent pipeline, which is crucial for the mission's success. This initiative follows Finance Minister Nirmala Sitharaman's announcement in the Budget regarding the second edition of the India Semiconductor Mission, reflecting the government's commitment to advancing the country's semiconductor industry.
Published: Feb 07 2026, 3 pmeznews.inThe Automotive Component Manufacturers Association of India (ACMA) has expressed strong support for the recently announced Interim Trade Agreement framework between India and the United States, which aims to bolster bilateral trade and manufacturing cooperation. In a joint statement, both nations confirmed the terms of the agreement, which includes preferential tariff rate quotas for automotive parts and the removal of Section 232 tariffs on select inputs. Vikrampati Singhania, ACMA President, highlighted that these measures will enhance export competitiveness and strengthen India's position in global automotive supply chains. Data from ACMA indicates a significant increase in trade, with India's auto component exports to the US rising from $3.56 billion in FY2020-21 to $6.23 billion in FY2024-25. Meanwhile, US exports to India also grew, reaching $1.51 billion in FY2024-25. ACMA looks forward to further collaboration to ensure comprehensive integration of automotive components in the final agreement.
Published: Feb 07 2026, 2 pmeznews.inThe United States has proposed the removal of reciprocal tariffs on gems and diamonds as part of an interim trade agreement with India, according to a joint statement from both nations. This move could significantly benefit India's gems and jewellery sector, which relies on the US for approximately 30% of its sales. The US plans to reduce tariffs on Indian exports from 50% to 18%, covering a range of goods, including pharmaceuticals and aircraft parts. India's gem and jewellery exports to the US have plummeted, with a 44% year-on-year decline recorded between April and December 2025, largely due to high tariffs. Colin Shah, Managing Director of Kama Jewelry, hailed the potential zero tariff as a pivotal moment for the industry, which has seen a drastic drop in diamond exports. The tariff waiver is expected to rejuvenate exports and restore vitality to India's diamond processing sector.
Published: Feb 07 2026, 1 pm
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