Under the new India-United States interim trade agreement, India has agreed to eliminate import duties on a wide range of U.S. products, granting them zero customs tariffs when they enter the Indian market. This move is part of a broader effort to deepen bilateral trade relations while maintaining safeguards for sensitive domestic sectors.
The tariff exemptions are designed to reduce costs for Indian businesses and consumers importing American goods, and to open up the Indian market to competitive global suppliers.
Complete List of U.S. Goods to Enter India Duty-Free
The following categories of products from the United States will attract zero import tariffs under the new trade framework:
1. Agricultural and Food Products
- Distillers Dried Grains with Solubles (DDGS), used in animal feed
- Certain nuts and dry fruits such as walnuts, almonds, pistachios
- Wine, spirits and other alcoholic beverages
- Other selected food and agricultural products as agreed in quota arrangements
2. Medical and Healthcare Products
- Select medicines including drugs used in cancer, heart and other major treatments
- Medical devices and diagnostic equipment such as microscopes and X-ray valves
- Hearing aids and related apparatus
3. Technology and Electronics
- Computer-related products and components
- Information and communication technology (ICT) goods for data centres and industrial use
- Semiconductor chips and advanced technology hardware
4. Chemicals and Industrial Inputs
- Certain organic and inorganic chemicals used in manufacturing and industrial processes
- Advanced machinery and specialised industrial equipment
5. Consumer and Lifestyle Products
- Cosmetic items imported from the U.S.
- Select high-quality consumer goods made in the United States
6. Aerospace and Automotive Parts
- Components for aircraft and aerospace industries
- Specific automobile parts used in manufacturing and repair
This extensive zero-tariff list aims to ease market access for U.S. exporters and provide Indian industries with cost-effective inputs, ultimately helping to lower product prices for end consumers and enhance industrial competitiveness.
Why India Has Included Zero Tariff Lines
The zero-tariff commitments are part of a carefully calibrated trade framework that seeks to balance market access with protection of domestic interests. While many industrial, technological and certain agricultural imports will enjoy duty-free entry, the deal excludes key sensitive sectors such as staples, dairy, spices and certain foods from tariff concessions to safeguard Indian farmers and producers.
The government has also reportedly set minimum import price mechanisms on some vulnerable products to prevent extremely cheap imports from hurting local manufacturers, especially in agriculture.
Backstory: India-United States Interim Trade Framework
The interim trade agreement — expected to be formalised by mid-March 2026 — represents significant progress in trade negotiations between India and the U.S. It includes commitments on tariff reductions, expanded market access for industrial and agricultural goods, and cooperation on standards and export controls.
In return, the United States has eased punitive tariffs previously imposed on Indian exports and agreed to more predictable tariff frameworks. For Indian businesses, this means easier access to U.S. markets for pharmaceuticals, gems and jewellery, aircraft parts, and technology goods, while U.S. companies get better access to the Indian market through duty-free imports.
