What are the key impacts of the India-US trade deal on agricultural imports?

The interim trade agreement between India and the US is expected to reduce or eliminate tariffs on 60-70% of India's agricultural imports from the United States.

How does the India-US trade deal affect India's GDP growth forecast?

Goldman Sachs has upgraded its forecast for India's real GDP growth in calendar year 2026 to 6.9% year-on-year, reflecting the anticipated benefits of lower US tariffs.

Which Indian export sectors are expected to benefit most from the trade agreement?

Sectors such as gems and jewellery, textiles, apparels, leather, footwear, and marine exports are anticipated to benefit significantly from the reduced tariff rates.

Home / Business and Economy / India-US Trade Deal: Tariffs Slashed, GDP Boosted

India-US Trade Deal: Tariffs Slashed, GDP Boosted

9 Feb

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Summary

India's US farm imports may see tariffs reduced to zero.
Goldman Sachs forecasts India's 2026 GDP growth to rise.
Key sectors like gems and textiles to benefit significantly.

India-US Trade Deal: Tariffs Slashed, GDP Boosted

An interim trade agreement between India and the United States, slated to take effect by mid-March, promises to reshape trade dynamics. Goldman Sachs anticipates that approximately 60-70% of India's agricultural imports from the US could face reduced or zero tariffs. Reflecting optimism about this pact, Goldman Sachs has revised its forecast for India's real GDP growth in calendar year 2026 upwards by 20 basis points to 6.9% year-on-year.

The agreement also includes provisions for the US to eliminate punitive tariffs on India for its oil purchases from Russia and to lower reciprocal tariffs. Barclays reports that this tariff reduction to 18% from 25% is expected to enhance India's trade competitiveness relative to its key trading partners. Furthermore, the gems and jewellery, textiles, and footwear industries are projected to be major beneficiaries, with effective tariff rates on Indian exports to the US potentially dropping from 35.7% to 16.3%.