India-US interim trade deal marks a major shift in bilateral economic ties. In this video, we explain how India gains from the new India-US trade framework, what changes immediately, and why the agreement matters for exporters, farmers and manufacturers.
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The India-US interim trade agreement delivers tangible benefits for India even before a full Bilateral Trade Agreement is signed. US tariffs on Indian goods have been slashed from 50% to 18%, making Indian exports far more competitive in the world’s largest consumer market.
Sectors like textiles, apparel, leather, handicrafts, chemicals and MSMEs stand to benefit instantly. In a major relief for exporters, the US has also removed the 25% penalty tariff linked to India’s Russian oil purchases, with refunds available for duties already paid.
Once fully concluded, the deal will offer zero-duty access for India’s strongest export sectors, generic pharmaceuticals, gems and diamonds, and aircraft components. The agreement also supports India’s manufacturing ambitions by reducing tariffs on advanced US industrial goods, lowering costs for domestic production under Make in India.
Opposition leaders raised concerns about the impact on farmers. The government says those concerns are addressed, with sensitive agricultural and dairy products fully protected and kept outside the tariff-cut framework.
The pact also strengthens cooperation on semiconductors, AI hardware, and global supply chains, positioning India as a preferred manufacturing and technology partner.
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