What is the main impact of the new India-US trade agreement on Indian exports?

The trade agreement significantly improves the competitiveness of Indian exports by reducing tariffs on billions of dollars worth of goods and granting duty-free access for others.

Which Indian sectors will benefit most from the US trade deal?

Key sectors like automobiles, textiles, gems, jewellery, and agricultural products are set to benefit from lower or zero-duty access into the US market.

How does the agreement address digital trade between India and the US?

A structured digital trade framework is established to reduce regulatory uncertainty and compliance costs for cross-border digital services, benefiting India's growing digital services exports.

Home / Business and Economy / India-US Trade Pact: Tariffs Slashed on Billions in Exports

India-US Trade Pact: Tariffs Slashed on Billions in Exports

10 Feb

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Summary

Tariffs on USD 30.94 billion Indian exports reduced significantly.
USD 10.03 billion in Indian exports will gain complete duty-free access.
Sensitive sectors like automobiles and textiles see substantial tariff cuts.

India-US Trade Pact: Tariffs Slashed on Billions in Exports

India and the United States have finalized a significant trade pact aimed at boosting Indian exports. This agreement will see tariffs on Indian goods valued at USD 30.94 billion reduced from 50% to 18%. Furthermore, reciprocal tariffs on an additional USD 10.03 billion worth of exports from India will be completely eliminated.

This landmark deal ensures that a substantial portion of Indian products entering the US will now face considerably lower tariffs or benefit from duty-free access. This strategic move is expected to significantly improve the price competitiveness of Indian exporters in the vast US market. Sensitive sectors have been carefully liberalized, with automobiles benefiting from quota-based access and duty reductions. Textile exports, in particular, will see a reduction from 50% to 18% tariffs, with silk items achieving zero-duty access.