Sansad TV

Perspective: India-US Deal: The Fine Print | 10 February, 2026

Sansad Tv

On the show today, we focus on the India–U.S. trade deal – and as I’d promised, we’re diving into the fine print today. Now that key details are available, we’re going to break down what the agreement really means, especially in terms of what India gets and gains. Commerce Minister Piyush Goyal, who led the negotiations, has described the pact as a landmark trade victory. India, he says, has secured preferential access to a 30-trillion-dollar U.S. market, along with comprehensive tariff rationalisation, zero-duty access across major product categories, enhanced digital and technology cooperation, and a carefully calibrated framework to safeguard India’s farmers, MSMEs and domestic industry. So how do the tariff changes benefit Indian exports? India’s export base of 86.35 billion dollars to the United States in 2024 now stands to gain from major tariff restructuring. Reciprocal tariffs, which were as high as 50 percent on several Indian products, have been substantially reduced. Of the total exports, 40.96 billion dollars were subject to these tariffs. Under the agreement, duties on 30.94 billion dollars’ worth of exports have been cut from 50 percent to 18 percent, while tariffs on another 10.03 billion dollars’ worth have been reduced from 50 percent to zero. That means a significant share of Indian goods entering the U.S. market will now enjoy sharply lower or completely duty-free access, improving price competitiveness. Sectorally, the gains are wide-ranging. Textile exports see tariffs drop from 50 percent to 18 percent, while silk secures zero-duty access, opening opportunities in a 113-billion-dollar U.S. market. Tariffs on gems and jewellery exports fall to 18 percent, giving India better access to a 61-billion-dollar market. Home décor exports also move from 50 percent to 18 percent, targeting a 52-billion-dollar market. Toys see similar reductions, improving access to an 18-billion-dollar market. And machinery exports now face 18 percent tariffs instead of 50 percent, opening doors in a massive 477-billion-dollar U.S. machinery market. In agriculture, India maintains a trade surplus of 1.3 billion dollars with the United States, with exports of 3.4 billion and imports of 2.1 billion in 2024. The U.S. will now apply zero additional duty on Indian agricultural exports worth 1.36 billion dollars. At the same time, highly sensitive sectors — including meat, poultry and dairy — remain fully protected under a carefully crafted exemption category. The agreement also secures zero additional duty access for 38 billion dollars’ worth of industrial exports. Sensitive sectors such as automobiles have been opened gradually through quota and duty-reduction mechanisms, while medical devices will see long, staggered phasing schedules. Beyond goods, the deal strengthens India’s digital backbone — facilitating access to advanced semiconductor chips, server components and other critical technology inputs needed for expanding Indian data centres and powering the Digital India initiative.

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