What are the zero tariffs in the India-US trade deal? Read the key points.

India and the United States have agreed on an interim trade agreement. The deal will reduce tariffs on Indian products from 50% to 18%, opening markets for MSMEs, farmers, and fishermen. This includes textiles, chemicals, generic medicines, and agricultural products. India will also reduce tariffs on American industrial and agricultural products. This agreement will promote job creation and economic security.

Ankush Pandey Ankush Pandey
Feb 14, 2026 - 12:42
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What are the zero tariffs in the India-US trade deal? Read the key points.
What are the zero tariffs in the India-US trade deal? Read the key points.

Highlights

  • The United States will reduce tariffs on Indian products from 50% to 18%.
  • A new market worth $30 trillion will open up for MSMEs and farmers.
  • Both countries will enhance economic security and technology cooperation.

Discussions regarding a trade deal between India and the United States have been ongoing for some time. The two countries have reached an agreement on this deal. India has also agreed to an interim trade agreement with the United States. Both countries have issued a joint statement in this regard.

So let's learn about the key highlights of this trade deal:

  • The United States has reduced tariffs on India from 50 percent to 18 percent.
  • This will open up a US$30 trillion market for Indian exporters, especially MSMEs, farmers, and fishermen.
  • The increase in exports will create millions of new employment opportunities for our women and youth.
  • Under this agreement, the United States will reduce mutual tariffs on Indian goods to 18 percent.
  • This agreement will provide significant market opportunities in key sectors such as textiles and clothing, leather and footwear, plastic and rubber products, organic chemicals, home decor, handicraft products, and select machinery.
  • Tariffs will be reduced to zero on a wide range of goods, including generic medicines, gems and diamonds, and aircraft parts.
  • India will receive exemptions on aircraft parts under Section 232, tariff rate quotas on auto parts, and negotiations on generic pharmaceuticals.
  •  India fully protects sensitive agricultural and dairy products, including corn, wheat, rice, soy, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables, and meat.
  • At the same time, India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, and other products.
  • Both countries are committed to providing each other with continued preferential market access in sectors of their choice.
  • Both countries will establish rules of origin to ensure that the benefits of the agreement accrue primarily to the United States and India.
  • The United States and India will discuss non-tariff barriers that impact bilateral trade.
  •  India has agreed to remove long-standing barriers to trade in US medical devices and eliminate restrictive import licensing procedures that delay market access or impose quantitative restrictions on US information and communications technology goods.
  • The US and India intend to discuss their respective standards and conformity assessment processes for mutually agreed areas.
  • If either country changes its fixed tariffs, the US and India agree that the other country may also modify its commitments.
  • The two countries will work to further expand market access opportunities through negotiations under the bilateral trade agreement.
  • The US and India have agreed to strengthen economic security cooperation to enhance supply chain resilience and innovation, and to take complementary steps to address non-market policies of third parties.
  • India intends to purchase $500 billion worth of energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal from the US over the next five years.
  •  India and the United States will significantly increase trade in technology products and expand joint technology cooperation, including in the areas of graphics processing units and other data center components.
  • The United States and India have committed to eliminating discriminatory or burdensome practices and other barriers to digital trade.
  • The United States and India will immediately implement this framework and work toward finalizing an interim agreement to achieve a mutually beneficial bilateral trade agreement.