India–US trade agreement unlocks preferential access to $30 trillion US market
New Delhi: The Union government on Monday said the India–US trade agreement marked a major breakthrough by opening preferential access for Indian exports to the $30 trillion United States market.
The Centre said the agreement strengthened India’s global trade position through tariff cuts, zero-duty access, and structural safeguards. India exported goods worth $86.35 billion to the US in 2024. The new framework expanded competitive access for textiles, leather, gems and jewellery, agriculture, machinery, pharmaceuticals, home décor, and technology-driven sectors.
Officials said reciprocal tariffs that earlier went up to 50% on Indian goods were sharply reduced. Of the $40.96 billion exports facing such duties, tariffs on $30.94 billion fell to 18%. Another $10.03 billion secured zero-duty entry. As a result, Indian products gained stronger price competitiveness.
The agreement also assured zero additional US duty on agricultural exports worth $1.36 billion. These measures gave stability to farm exporters and reduced uncertainty. The government said Section 232 duties on exports worth $28.30 billion were also brought down to zero on an end-use basis.
India–US trade agreement strengthens exports while protecting sensitive sectors
The Centre said the agreement created a clear tariff advantage over competing suppliers such as China, Vietnam, Bangladesh, and ASEAN nations. This gap was expected to boost India’s position in labour-intensive and high-value manufacturing.
Textiles and apparel saw tariffs cut from 50% to 18%, while silk received zero-duty access in a $113 billion US market. Leather and footwear exports gained similar relief in a $42 billion market. Gems and jewellery secured 18% tariffs, with zero-duty access for diamonds, platinum, and coins.
Machinery exports also benefited as duties fell to 18%, opening access to a $477 billion US market. Home décor, toys, and several industrial goods gained wider entry. The agreement secured zero-duty treatment for $38 billion in industrial exports, including aircraft parts and pharmaceuticals.
In agriculture, the government said sensitive sectors such as dairy, meat, poultry, cereals, and pulses remained fully protected. Market opening followed a calibrated approach using phased cuts and tariff quotas. Officials said this balance protected farmers while expanding exports.
Beyond tariffs, the agreement strengthened digital trade, technology access, and quality standards. The Centre said the framework balanced growth with safeguards and positioned India for sustained export-led expansion.
