India has achieved a major economic milestone with the announcement of a comprehensive India-U.S. Bilateral Trade Agreement on 9 February 2026. This agreement provides Indian exporters preferential access to the United States — the world’s largest economy, valued at over USD 30 trillion. The development marks a transformational step in India’s global trade strategy and strengthens economic ties between the two nations.

Major Tariff Cuts Open Big Opportunity for Indian Exports
India’s new trade framework with the U.S. delivers significant tariff relief, sharply improving export competitiveness. Tariffs on Indian goods worth USD 30.94 billion have been reduced from 50% to 18%, while exports valued at USD 10.03 billion will now enjoy zero-duty access. Additionally, products worth USD 1.04 billion—including key agricultural and specialty items—qualify for zero additional duty under the exemption category.

These measures lower costs substantially and strengthen India’s pricing edge in the U.S. market. The move is particularly beneficial for MSMEs and export-driven sectors, creating a more supportive environment for growth, expansion, and global market penetration.

Textile, Leather & Gems Sectors Set for Export Surge
India’s textile and apparel industry emerges as a major beneficiary, with tariffs slashed from 50% to 18%, while silk products gain zero-duty access. With the U.S. textile and apparel market valued at nearly USD 113 billion, the reduction unlocks strong growth potential for Indian manufacturers.

The agreement also strengthens prospects for the leather and footwear sector, offering improved access to the USD 42 billion U.S. market. Meanwhile, gems and jewellery exports, including diamonds and platinum products, benefit from tariff cuts and zero-duty treatment in select categories. These labour-intensive sectors are expected to witness higher exports and job growth.

Strengthening Technical and Digital Trade Cooperation
Beyond tariffs, the agreement enhances cooperation in standards alignment, reduction of non-tariff barriers, and technical facilitation. It also promotes collaboration in digital trade and high-technology sectors, including semiconductors, ICT goods, and advanced manufacturing inputs. This ensures that the partnership is future-oriented and innovation-driven.

Industrial & Agri Exports Get Strong Tailwind
Tariff cuts now cover home décor and toy exports, tapping into rising global demand. Machinery and industrial goods will face reduced tariffs of 18%, improving access to the vast USD 477 billion U.S. market and reinforcing India’s manufacturing export strength.

In agriculture, the U.S. will impose zero additional duty on Indian exports worth USD 1.36 billion, including spices, tea, coffee, nuts, and processed foods. Meanwhile, sensitive segments such as dairy, poultry, meat, cereals, and millets remain safeguarded through calibrated tariffs, ensuring domestic producer protection alongside export growth.

Strategic Push for Long-Term Growth
Overall, the India–U.S. trade pact marks a major strategic milestone. It expands export opportunities, supports core industries, and deepens bilateral economic ties.

By balancing wider market access with protection for sensitive domestic sectors, the agreement reinforces India’s path toward sustained global competitiveness and long-term economic growth.

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