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Indian goods worth about Rs 4 lakh crore will become tax free in America.Image Credit source: ChatGPT

Trade is being discussed all over the country between India and America. This deal is also being called the father and end of all deals. The framework of this deal was also released on Saturday and joint statements also came out from both the countries. Now every sector is trying to extract positive for itself from the framework of this deal or the initial phase of the deal. The special thing is that the information given by the government is that goods worth 44 billion dollars i.e. about Rs 4 lakh crore will become completely tax free.

According to the report, no tax will be applicable on James and Diamonds. At the same time, no tax will be imposed on other pharma products also. Apart from all this, there will be no tax on the export of mobile phones from the country to America. Right now only the framework of trade between the two countries has been revealed. Soon it will be approved as a formal deal. Let us also tell you which products they are. Which will be tax free in America.

Rs 4 lakh crore will be tax free in America

According to government sources, under the interim India-US trade framework, gems, diamonds and aircraft parts will play a leading role among the $44 billion products to be exported to the US at zero duty. Of this total exports, $30 billion of exports were already entering the US market without duty, while now an additional $14 billion of products have joined the category of zero duty exports.

The zero-tariff figure of $44 billion is part of India's total exports to the US of $86.51 billion in FY 2025. Electronics and generic drugs were among the categories that already had zero duty, and even before the new framework, these accounted for a major share of the $30 billion tax-free exports. Now, with additional exports of $14 billion, more products have come under the ambit of zero duty.

These sectors will benefit from zero tariff

Addressing the press conference, Union Commerce and Industry Minister Piyush Goyal said that many high value sectors will benefit. He said that there are many such items on which now there will be no tax on sending goods to the United States by our exporters. He further said that for example, zero tariff will be applicable on gems and diamonds. Zero tariff will also be imposed on pharmaceutical products exported in large quantities from India. Zero tariff will also continue on smartphones exported in large numbers from India to America.

Apart from gems and diamonds and aircraft parts, the zero duty list includes machinery parts, generic drugs, pharma products, certain auto parts, platinum, watches, essential oils and home decor items such as chandeliers and lamp parts. Some inorganic chemicals, as well as selected paper, plastic and wooden items also come under this.

Agricultural exports and safeguards

Goyal said that now there will be zero tariff on many agricultural products, whereas earlier it was up to 50 percent. These include spices, tea, coffee, copra, coconut and coconut oil, vegetable oils and waxes, betel nuts, Brazil nuts, cashews, chestnuts and fruits and vegetables such as avocado, banana, guava, mango, kiwi, papaya and mushrooms, as well as barley and some processed food products.

Also, he emphasized that sensitive agricultural products have not been included in it. He said that we have not included any such product which will harm any Indian farmer. All sensitive products have been excluded from the agreement. He further said that no genetically modified product will enter India, no exemption will be given on meat, poultry, dairy, soybean, maize, rice, wheat, sugar, millet, bananas, strawberries, cherries, citrus fruits, green peas, chickpea, moong, oilseeds, ethanol and tobacco.

India-US trade and tariff structure

Trade data shows that in the financial year 2025, India imported goods worth $ 45.62 billion from America, while exports to America stood at $ 86.51 billion. Under the framework announced earlier this week, Washington has reduced tariffs on Indian goods to 18 percent from 50 percent effective in August 2025. US President Donald Trump said India will buy more than $500 billion worth of American energy, technology, agricultural products and coal, among other goods.

According to the joint statement, the reciprocal tariff of 18 percent will be applicable on categories like textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, handicraft products and certain machinery. Subject to the successful conclusion of the interim agreement, the US will remove tariffs on a wide range of identified goods for cooperating partners, including generic pharmaceuticals, gems and diamonds, and aircraft parts.

Industry response

Welcoming the framework, Gems and Jewelery Export Promotion Council Chairman Kirit Bhansali said that this agreement will provide relief to the sector which was facing high tariffs for the last one year. He also said that America remains the most important market for Indian gems and jewelery exports.