The 2026 India–US Trade Framework: Economic Realignment and the Cost of Cooperation

In early February 2026, the global trade landscape underwent a significant shift as India and the United States announced an interim trade framework. Described officially as a “give-and-take” arrangement, the deal follows nearly a year of economic friction and tariff escalation. While it promises tangible relief for select manufacturing sectors, it simultaneously exposes India to long-term legal, strategic, and geopolitical trade-offs that deserve closer scrutiny. To understand the agreement, it must be viewed through three interlinked lenses: national-level trade-offs, localized industrial impact, and the deeper legal–geopolitical consequences of aligning with a volatile global partner. The National Trade-Off: A $500 Billion Commitment At the heart of the agreement lies a partial…