India and the US agreed on an interim trade framework that expands market access, lowers tariffs and sets the stage for a broader bilateral deal. The framework targets balanced trade, supply chain resilience and deeper technology cooperation. India intends to buy $500 billion of US energy & tech products, aircraft & parts, precious metals, tech products, coking coal over 5 years. ET takes a look:
18% US tariff, below key competitors $44 b of Indian exports will get duty free access to the US Lower duty on critical tech inputs, chips, semiconductor, aircraft, machinery Zero duty on spices, tea, coffee, avocado, barley, canary seeds, bakery goods, cocoa & products, sesame seeds, poppy seeds, fruit jams & pastes No additional duty on Section 232 goods, aircraft and machinery parts, generic drugs, pharma ingredients, elementary auto parts 
Trade access of $52 billion 0% duty free access to market worth $13 billion for products seats, parts of lamp, chandeliers, etc Edge over China (35%), Vietnam (20%), Malaysia (19%)
NON-TARIFF MEASURES
GROWTH BOOST
Exports lift could add 20–30bps to FY27 GD
WHAT INDIA IS OFFERING
KEY GAINS FOR INDIA
SECTORAL GAINS
TEXTILE & APPAREL- 0% on silk; Market access of $13 billion
- Edge over others: China (35% tariff), Bangladesh (20%), Vietnam (20%), Indonesia (19%)
- Market access of $61 billion
- 0% duty market access of $29 billion for diamonds, platinum, coins, etc
- Tariff advantage: South Africa (30%), Thailand (19%), China (35%)
- Market access of $42 billion
- Edge over China (35%), Indonesia (19%), Cambodia (19%)
- Market opportunity of $18 billion
- Competitive access: China (35%), Indonesia (19%), Vietnam (20%)
- Market access of $477 billion with current India exports of $2.35 b
- Edge over Malaysia (19%), Thailand (19%), Vietnam (20%)
NON-TARIFF MEASURES
- India to address US concerns on medical devices, ICT import licensing, food/agri products
- New Delhi will also review US/global standards, testing norms within six months in selected sectors
- Both countries noted that any changes in agreed tariffs by one side allows the other to modify its commitments
- Digital trade rules to be part of BTA
Exports lift could add 20–30bps to FY27 GD
WHAT INDIA IS OFFERING
- Low or zero levy on all US industrial goods
- Cut in tariffs on selected agricultural and food products, including animal feed, tree nuts, fresh & processed fruits, soyabean oil, wine and spirits
- Apple, almonds, cotton allowed on quota
- Sensitive staple items outside interim deal ambit
- Zero duty on 800-1,600 cc bikes, duty cut on diesel cars above 2,500 cc & petrol cars above 3,000 cc
