Home / Business and Economy / India-US Trade Pact: Tariffs Slashed, Key Sectors Gain Access
India-US Trade Pact: Tariffs Slashed, Key Sectors Gain Access
7 Feb
Summary
- Reciprocal tariffs on Indian exports to the US will fall sharply from 50% to 18%.
- Gems, jewellery, pharmaceuticals, and textiles gain zero-duty access to the US.
- Sensitive agricultural items like dairy and select fruits are excluded from the deal.
India and the United States have established a historic interim trade framework, signaling a major step toward achieving USD 500 billion in bilateral trade. Union Commerce and Industry Minister Piyush Goyal announced that reciprocal tariffs on Indian exports to the US will experience a substantial reduction, decreasing from 50% to 18%.
This agreement grants crucial sectors, including gems and jewellery, pharmaceuticals, and textiles, zero-duty access to the US market. The framework also facilitates easier import of vital high-tech goods such as semiconductors and medical devices, aligning with India's 'Viksit Bharat 2047' vision. The Minister emphasized India's continued strategic autonomy in energy and its commitment to balanced trade that fosters job creation.
Crucially, India's agricultural sector receives full protection under this agreement. Sensitive items, including dairy products, soy meal, and specific fruits, have been strategically kept outside the scope of the trade deal, ensuring their stability and market access within India.
