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
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 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.




