India and the United States have announced a framework for an Interim Trade Agreement that will significantly cut import duties and boost bilateral trade. While the deal promises cheaper goods and better market access, some sensitive sectors will remain protected.

Here’s a simple breakdown of what gets cheaper and what stays unaffected

What could get cheaper in India

India will eliminate or reduce import duties on most US industrial goods and several food and agricultural products, which could lead to lower prices for consumers and businesses.

  • American fruits and nuts (tree nuts, fresh and processed fruits)
  • Soybean oil and animal feed products
  • Wine and spirits from the US
  • Aircraft and aircraft parts
  • Technology products and machinery
  • Medical devices and ICT equipment

These cuts are expected to benefit Indian airlines, hospitals, manufacturers, and consumers, while also helping improve supply chains and product availability.

What gets cheaper for Indian exporters in the US

The US will reduce tariffs on Indian goods to 18% from 50%, boosting exports from labour-intensive sectors such as:

  • Textiles and apparel
  • Leather and footwear
  • Plastic and rubber goods
  • Organic chemicals
  • Home decor and handicrafts
  • Machinery
  • Generic medicines
  • Gems and diamonds

This could mean more orders, more jobs, and better export earnings for Indian businesses, especially MSMEs.

What will remain unaffected in India

India has protected sensitive farm and rural sectors. No tariff cuts will apply to:

  • Rice, wheat, maize, and soya
  • Milk, cheese, poultry, and meat
  • Tobacco and ethanol
  • Certain vegetables

India also plans to buy USD 500 billion worth of US goods over five years — including energy, aircraft, technology products, and precious metals — which could reshape prices, supply chains, and employment in both countries.

The interim pact is expected to be finalised by mid-March.