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India–US Trade Agreement
India and the US conclude a trade agreement under which the US reduces reciprocal tariffs on Made in India products from 25% to 18% with immediate effect and withdraws an additional 25% duty. The agreement also records India’s commitments to scale up imports of American goods and to progressively reduce tariffs and non-tariff barriers against the US.
India–US Trade Agreement :
| Dimension | Key Details |
|---|---|
| US tariff action | US imposes a tariff of up to 50% comprising a 25% reciprocal tariff plus an additional 25% duty over Russian oil imports. |
| India’s import | India agrees to scale up imports of American goods including over $500 billion worth of energy, technology products, and nuclear equipment. |
| India’s market access | Progressively reducing its tariffs and non-tariff barriers against the US. |
| Trade relationship | One of India’s top trading partners; India runs a trade surplus with the US driven mainly by services and high-value goods exports. |
| FDI fact (2000–2025) | USA is the 3rd largest investor in India with cumulative FDI inflows of US$ 70.65 billion (2000–2025). |
| Bilateral trade volume | Bilateral trade stands at US$ 132.2 billion in FY25 as against US$ 119.71 billion in FY24. |
| Key Indian exports to the US | Pharmaceuticals; engineering goods; electronics; gems & jewellery. |
| Key US exports to India | Crude oil; LNG; aircraft and parts; defence equipment. |