From Aircraft Parts To Diamonds And Tea: Key Items Set To Benefit From Zero Tariffs Under India–US Trade Deal

The India US trade deal progresses toward signing, featuring an 18% reciprocal tariff intended to boost Indian exports. Key sectors such as gems, diamonds, pharmaceuticals and aircraft parts gain zero duty access in the US, while agriculture remains protected. The agreement aligns with Make in India and broader trade goals.

India and the United States are moving closer to signing an India-US trade deal that Commerce Minister Piyush Goyal says will sharply lift Indian exports. A key element is a new 18% reciprocal tariff, which Goyal describes as competitive against rates facing rival exporting nations.

The minister’s comments follow a joint statement issued by India and the US, with the formal India-US trade deal expected to be signed in the coming days. The package also reflects understandings announced earlier this week by US President Donald Trump and Prime Minister Narendra Modi.

India-US trade deal: lower tariffs and export gains

Goyal highlighted that earlier duties stood at 50% on a reciprocal basis, making Indian goods less attractive.

"The 50% reciprocal tariff has been reduced to 18% which is less compared to our neighboring countries, and will provide a lot of help to our exporters. The deal brings new hopes and opportunities in India's growth story," Goyal said.

According to Goyal, several important Indian exports under the India-US trade deal will now enter the American market with zero tariffs.

This group covers high-value sectors such as gems and diamonds, pharmaceutical products and aircraft parts, while smartphones, which already enjoy duty-free access, will continue to face zero duty in the US.

India-US trade deal: products at zero duty and key sectors

Goyal explained that many agricultural and food-linked products are also included in the India-US trade deal framework. Spices, tea, coffee, coconut and coconut oil, areca nut, Brazil nut, cashew nut, chestnut, vegetable wax, avocado, banana, mango, pineapple, mushrooms and some bakery products are all expected to benefit from zero tariffs on entry into the US.

The minister underlined how this broad coverage feeds into India’s manufacturing and export plans. "Tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thereby further enhancing India's export competitiveness and Make in India.

India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors," Goyal said. "These also include spices, tea, coffee, coconut oil, cashew nuts, and several fruits and vegetables such as avocado, banana, mango, pineapple, and mushrooms, along with select bakery products," the Commerce Minister added.

Officials stress that Indian agriculture remains a protected area within the India-US trade deal, despite the export push.

Goyal said India’s sensitive farm and dairy segments will stay shielded from additional competition and confirmed that no genetically modified products from the US will be permitted into the Indian market under the agreement.

The minister also drew attention to the different treatment for the two countries’ farm exports under the India-US trade deal. "Agricultural products from Indian farmers will be exported to the United States at zero duty.

At the same time, no tariff concessions have been granted for agricultural products from US farmers entering the Indian market," he said. India has signalled that it plans to buy $500 billion worth of US energy, aircraft and aircraft parts, precious metals, technology products and coking coal over five years, further tying the accord to long-term trade flows.