The India-US Bilateral Trade Agreement secures preferential access for Indian exports in the US market valued at over $30 trillion. This agreement includes tariff rationalization, zero-duty access across various product categories, digital and technology cooperation, and measures to protect India’s farmers and industries. With India’s total exports to the United States reaching $86.35 billion in 2024, key sectors like textiles, leather, gems and jewelry, agriculture, machinery, home decor, pharmaceuticals, and technology industries will benefit significantly.
The agreement reduces tariffs on Indian exports worth $30.94 billion from 50% to 18%, and on another $10.03 billion from 50% to zero. This move will make a substantial portion of Indian goods entering the US market face lower tariffs or enjoy duty-free access, enhancing their price competitiveness. Sectors like textiles, apparel, silk, machinery, leather, footwear, gems, and jewelry will see notable tariff reductions, providing improved access to the US market.
Indian agricultural exports worth $1.36 billion will now have zero additional US duty access, benefiting products like spices, tea, coffee, fruits, nuts, and processed foods. Sensitive sectors such as dairy, meat, poultry, and cereals remain fully protected under this trade deal. The agreement also establishes a tariff advantage for India over other competitors like China, Vietnam, Bangladesh, Malaysia, Indonesia, Philippines, Cambodia, and Thailand in the US market.
