In a dramatic late‑night breakthrough on Monday night, Prime Minister Narendra Modi and U.S. President Donald Trump sealed what both sides are calling a historic trade deal, ending months of tense negotiations and resetting the trajectory of India–US economic ties.
The agreement — struck during a high‑level phone call — commits India to reducing tariffs and non‑tariff barriers on US goods, potentially all the way to zero, marking one of the biggest market‑access shifts in India’s recent trade policy. As India opens its doors wider to U.S. products, a range of American goods is now poised to get significantly cheaper for Indian consumers.
India-US Trade Deal: What Might Get Cheaper
According to the NDTV Profit Research, American goods imported into India could see a decline in retail prices as tariff relief eases entry costs.
- Agricultural goods such as like pulses, dairy, processed foods are likely to benefit from reduced import levies, offering potential price relief to consumers amid rising food inflation.
- Tech hardware and components such as laptops, gadgets, electronics may also become more competitively priced in the Indian market.
- Additionally, consumer products such as processed foods, packaged goods, appliances could see improved affordability as import‑related expenses decrease.
What Gets Cheaper for Indian Exports to the U.S.
On the export front, NDTV Profit’s research states that Indian sectors such as textiles and apparel may benefit from tariffs cut, lowering landed costs in the U.S. This also benefits exporters who stand to gain from improved market access.
- Gems and jewellery export may become more competitive
- Industrial categories including steel, chemicals, engineering goods will have a better market access and less trade friction.
What Still Might Be Expensive
While several categories are set to become more affordable, some critical industrial products may remain expensive due to persisting duty structures.
- Steel, aluminium and copper — U.S. Section 232 duties remain around 50% will continue to face high entry barriers.
- Similarly, the tariffs might still be approximately 25% on some auto components due to limited tariff relaxation.
Inforgraphics: What Might Get Cheaper
Photo Credit: (Photo: NDTV Profit)
India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18% from current 25%, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi. The prime minister said he was delighted that “Made in India products will now have a reduced tariff of 18%”.
Trump said India will move forward to reduce “tariffs and non tariff barriers” against the US to zero, adding New Delhi would buy American goods, including energy, worth more than $500 billion.
Trump said Modi also committed to buy American goods at much higher level, in addition to over $500 billion dollars of US energy, technology, agricultural, coal, and many other products.
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