India secured preferential access to US$30 trillion US market, says government

A latest government update has noted that India secured preferential access to a USD 30 trillion US market following the US-India trade deal framework. Textiles & apparel gain tariff cuts from 50% to 18%, with silk securing 0% duty access in a USD 113 billion U.S. market. Machinery exports see tariffs reduced to 18%, opening opportunities in a USD 477 billion U.S. market· USD 1.36 billion of Indian agricultural exports receive zero additional US duty access. Key products including spices, tea, coffee, fruits, nuts and processed foods gain zero-duty treatment while highly sensitive sectors such as dairy, meat, poultry and cereals remain fully protected.

 

The India-U.S. Bilateral Trade Agreement marks a major milestone in India's global trade engagement, securing sustained preferential access for Indian exports in the U.S. market valued at over $30 trillion. The agreement delivers comprehensive tariff rationalisation, zero-duty access across large product categories, enhanced digital and technology cooperation, and a carefully calibrated framework to safeguard India's farmers, MSMEs and domestic industry.
With India's total exports to the United States standing at USD 86.35 billion in 2024, the agreement significantly enhances competitive access across key sectors including textiles, leather, gems and jewellery, agriculture, machinery, home decor, pharmaceuticals, and technology-driven industries.

India's export base of USD 86.35 billion to the United States in 2024 now benefits from major tariff restructuring. Reciprocal Tariffs (RT) were earlier as high as 50% on several Indian products. These have now been substantially reduced. Of the total exports, USD 40.96 billion were subject to Reciprocal Tariffs.
Under the agreement, tariffs on USD 30.94 billion of these exports have been reduced from 50% to 18%, while tariffs on another USD 10.03 billion have been reduced from 50% to zero. This means a substantial share of Indian goods entering the U.S. market will now face either sharply lower tariffs or completely duty-free access, significantly improving price competitiveness.

Additional structural duty relief ensures zero reciprocal duty access for USD 1.04 billion under the exemption category. Within this, agricultural products valued at USD 1.035 billion have been assured zero Reciprocal Tariff by the United States. This provides stability and predictability for Indian agricultural exporters and ensures that key farm products continue to enjoy uninterrupted market access.

Additional Structural Duty Relief assures zero reciprocal duty for USD 28.30 billion under Section 232 (end-use basis). For these products, additional duties that earlier could go up to 50% have been reduced to zero.

The agreement creates a clear tariff differential in favour of India. While duties on Indian products have been lowered, several competing suppliers continue to face elevated tariffs in the US market, including China (35%), Vietnam (20%), Bangladesh (20%), Malaysia (19%), Indonesia (19%), Philippines (19%), Cambodia (19%) and Thailand (19%).

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