The details of an interim agreement that lowers tariffs on Indian exports to the US from 50% to 18% have been announced

US President Donald Trump signed an executive order on Friday that eliminates the 25% tariff imposed on India in August for importing Russian oil.

The order claims that New Delhi has agreed to stop buying oil from Russia, directly or indirectly, and will instead purchase US energy products.

The two countries have also released a joint statement outlining the details of an interim trade deal that would be a part of a broader Bilateral Trade Agreement that New Delhi and Washington have been negotiating for over a year. This comes days after Trump and Indian Prime Minister Narendra Modi announced that they reached a deal, without revealing the details.

According to Commerce Minister Piyush Goyal, the framework agreed by the countries opens up a $30 trillion market for Indian exporters as the US slashes reciprocal tariffs from the earlier 50%, which included a 25% penalty for Russia oil imports, to 18%. In addition, he said, tariffs will be reduced to zero for a range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts.

Modi hailed the deal, saying it "reflects the growing depth, trust and dynamism of our partnership."

Announcing the deal earlier this week, Trump claimed that the tariffs will be reduced after Modi "agreed to stop buying Russian oil" and instead will increase energy imports from US and potentially Venezuela.

New Delhi has not publicly confirmed that it will end purchases of Russian oil. Moscow has said it is not aware of any decision by India to cut supplies.

India earlier defended its trade with Russia, arguing that its decisions are guided by national interests and the need to ensure energy security for its population of 1.4 billion.

Commenting on the deal, Goyal said on Wednesday that ensuring energy security will remain the "supreme priority" of the government, adding that diversifying energy sourcing is "at the core of our strategy to ensure this."

Foreign Ministry spokesperson Randhir Jaiswal reiterated on Thursday that India is open to exploring oil purchases from various sources. 

The executive order claims that India has taken "significant steps" to address US concerns on Russian oil purchases and to "align sufficiently with the United States on national security, foreign policy and economic matters." It also includes a monitoring mechanism to track whether India has stopped Russian oil purchases and whether tariffs should be reimposed.