Smartphones, gems, pharma and spices will attract zero duty: Goyal on India-US trade deal

New Delhi: Union Minister for Commerce and Industry Piyush Goyal on Saturday said that several Indian exports to the United States will attract zero import duty under the newly announced interim trade framework between the two countries.

Speaking to reporters, Goyal said, “...There are several items on which zero duty will now be levied when our exporters send goods to the United States of America. For example, zero duty will be applied to gems and diamonds. Pharmaceutical products, which are exported from India in large quantities, will also be subject to zero duty. Smartphones, which are exported from India to the US in large numbers, will continue to have zero duty. In this way, there are numerous such items on which zero duty will be levied in the future.

He added, “In the agricultural sector as well, there are many items that will be exported from India to the US on which a zero reciprocal tariff will be applied, meaning the additional duty will be zero. For example, spices, tea, coffee and products made from them, coconut and coconut oil, vegetable wax, areca nut, Brazil nut, cashew nut, and chestnut. Many fruits and vegetables are also included.”

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India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.

While the US will reduce tariffs on Indian goods to 18 per cent from the present 50 per cent, India will eliminate or cut down import duties on all US industrial goods and a wide range of American food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.

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According to a joint statement issued by both sides, India has expressed its intention to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.

"The US and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade," the statement said.

Further, through an executive order, US President Donald Trump has removed the 25 per cent tariffs, or additional import duty, that it imposed on India in August last year for purchasing Russian oil, citing that the country has undertaken "significant steps" and New Delhi has committed to stop directly or indirectly importing oil from Moscow.

The US added that India has committed to stopping, directly or indirectly, importing Russian oil.

"Effective with respect to goods entered for consumption, or withdrawn from the warehouse for consumption, on or after 12.01 am eastern standard time on February 7, 2026, products of India imported into the United States shall no longer be subject to the additional ad valorem rate of duty of 25 per cent imposed pursuant to Executive Order 14329," the order said.