India-US Trade Deal LIVE: $10 Billion Worth of Indian Goods May Get Zero-Duty Access

After months of negotiations, India and the United States have reached a major breakthrough in their trade relationship, finalising an agreement that cuts US tariffs on Indian imports to 18% from the 50% imposed in August 2025.

People familiar with the matter told Hindustan Times that the deal not only sharply reduces duties but also exempts Indian dairy and other “sensitive” agricultural products from its scope.

The agreement is expected to benefit Indian exporters significantly. According to Annexure III of the US Potential Tariff Adjustments for Aligned Partners (PTAAP), Indian goods worth nearly $10 billion could enter the US market at zero duty. Around 2,000 products across sectors such as natural resources, coffee, tea, fruits, vegetables, and fruit juices are eligible for reduced or zero tariffs.

US authorities reportedly do not impose duties on these items for any trading partner.

Key Highlights of the India-US Trade Deal

Tariffs cut to 18%: Prime Minister Narendra Modi and US President Donald Trump have confirmed that Indian exports will now face a uniform tariff of 18%. This follows the removal of a 25% penalty imposed over India’s oil trade with Russia and a reduction in reciprocal duties from 25% to 18%.

$500 billion purchase claim: President Trump has claimed that India has agreed to buy more than $500 billion worth of American goods, including energy products. However, Indian officials have not confirmed this figure.

Zero tariffs on US goods? US Trade Representative Jamieson Greer said India would reduce tariffs on several American agricultural and industrial products to zero. This claim has yet to be officially verified by New Delhi.

Russia oil trade status: India has not confirmed claims that it will end oil imports from Russia. These imports were cited by Washington as the reason for imposing higher tariffs in 2025.

Protection for agriculture and dairy: Union Commerce and Industry Minister Piyush Goyal said sensitive agricultural and dairy sectors have been safeguarded under the agreement. He added that the deal would strengthen labour-intensive and export-oriented industries.

US officials have also acknowledged that India continues to protect key farm products under the pact.

The agreement is seen as a significant step in stabilising bilateral trade ties and improving market access for Indian exporters, though several aspects of the deal are still awaiting formal clarification.