New Delhi, Feb 9 India will offer duty concessions based on quotas in the automotive sector, while access to alcoholic beverages has been offered under tariff reduction and minimum import price-based formulations under the trade agreement with the US, the government said on Monday.
It also said that under the agreement, tariffs on India's exports of USD 30.94 billion will be reduced from 50 per cent to 18 per cent, while the reciprocal tariffs on another USD 10.03 billion will be eliminated.
"This means a significant portion of Indian goods entering the US market will now face either sharply lower tariffs or completely duty-free access, significantly improving price competitiveness," the government said.
It said that USD 1.36 billion of Indian agricultural exports will receive zero additional US duty access. Key products include spices, tea, coffee, fruits, nuts, and processed foods.
The government said that sensitive sectors such as automobiles have been liberalized through a combination of quota and duty reduction mechanisms.
According to an official, India is not granting any duty concessions on electric vehicles to the US.
Medical devices have been addressed through long and staggered phasing schedules, and precious metals and other sensitive industrial products have been managed through quota-based tariff lowering.
"Alcoholic beverages have been offered under tariff reduction along with minimum import price-based formulations, consistent with India's approach in other free trade agreements (FTAs)," it added.
Listing out sectoral gains for India, it said tariffs on textile exports will be cut down from 50 per cent to 18 per cent, while silk receives nil duty access, opening enhanced opportunities in the US market valued at USD 113 billion.
Similarly, tariffs will be reduced to 18 per cent for the domestic gems and jewellery sector, providing preferential access to the American market valued at USD 61 billion.
"In addition, 0 per cent duty market access has been secured for major product categories including diamonds, platinum, and coins, covering a US market of USD 29 billion," it said, adding.
Key export categories expected to benefit include cut and polished diamonds, lab-grown synthetic diamonds, coloured gemstones, synthetic stones, and articles of gold, silver, and platinum.
AGRI SECTOR:
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It said India maintains a trade surplus of USD 1.3 billion in agricultural trade with the United States, with exports of USD 3.4 billion and imports of USD 2.1 billion in 2024.
The United States will apply zero additional duty on Indian exports worth USD 1.36 billion.
Beneficiary products include spices, tea and coffee, copra and coconut oil, nuts such as cashew nuts and chestnuts, fruits including avocados, bananas, guavas, mangoes, kiwis, papayas, pineapples, and mushroom.
Cereals such as barley and canary seeds, bakery products, cocoa, and cocoa preparations, sesame and poppy seeds, and processed products such as fruit pulp, juices and jams will also be benefitted.
In line with India's approach in previous trade agreements, agricultural market access has been structured based on product sensitivity.
The offer is categorized into immediate duty elimination, phased elimination (up to 10 years), tariff reduction, margin of preference, and tariff rate quota mechanisms.
It said highly sensitive agricultural sectors remain fully protected under a carefully crafted exemption category. These broadly include meat, poultry, and dairy products; GM food products; soyameal; maize; and cereals.
For select sensitive agricultural products, the tariff reduction category has been applied to ensure that a measured level of duty protection continues.
Examples include parts of plants, olives, pyrethrum, and oil cakes.
Certain highly sensitive items have been liberalised under Tariff Rate Quotas (TRQs), where limited quantities are allowed at reduced duties.
Products under this category include in-shell almonds, walnuts, pistachios, and lentils, it said.
It added that phased elimination of tariffs over up to ten years has been adopted for certain intermediate products used by India's food processing industry and sourced from multiple countries.
These include albumins, certain oils such as coconut oil, castor oil and cotton seed oil, and plants and parts of plants.
"Immediate duty elimination has been offered only for select non-sensitive products that are already liberalised under other FTAs," it said.
INDUSTRIAL GOODS:
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The agreement secures zero additional duty access for industrial exports valued at USD 38 billion, the government said.
India will face zero-reciprocal duty in major industrial product categories, including gems and diamonds, platinum and coins, clocks and watches, essential oils, inorganic chemicals, articles of paper, plastics and wood, and natural rubber.
On the other hand, market access for American industrial goods has been structured strictly on the basis of product sensitivity, combining immediate tariff elimination, phased reduction (up to ten years) and quota-based access.
DIGITAL TRADE:
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In 2024, India's digitally-delivered services exports stood at USD 0.28 trillion, growing at 10.3 per cent year-on-year.
India ranks 5th in exports of global digitally-delivered services and 11th in imports.
While the United States holds the first rank in both exports and imports.
"A structured digital trade framework between the two countries reduces regulatory uncertainty, lowers compliance friction, and facilitates smoother cross-border service delivery," it said.