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India-US Trade Deal to Slash Tariffs, Making Electronics & Food Cheaper

A new trade deal between India and the United States will cut reciprocal tariffs, making a range of imported goods more affordable for Indian consumers. Key beneficiaries include tech hardware like laptops and gadgets, along with select agricultural products such as pulses and dairy, which could help ease food inflation. Sectors like textiles, apparel, and gems and jewellery are also poised to gain from increased market access and reduced duties. The agreement was finalized following a discussion between Prime Minister Narendra Modi and US President Donald Trump, though some industrial goods like certain steel and auto components will still face significant tariffs.

Key Points: India-US Trade Deal Cuts Tariffs: Cheaper Electronics, Food Imports

  • Tech hardware & electronics to get cheaper
  • Processed foods & appliances may see lower prices
  • Textiles, gems, jewellery sectors to gain
  • Some steel & auto parts still face high duties
2 min read

India-US trade deal: Which goods might get cheaper?

New India-US trade agreement reduces reciprocal tariffs, promising lower prices on tech gadgets, appliances, and select agricultural goods like pulses and dairy.

"Delighted that Made in India products will now have a reduced tariff of 18 per cent. - Prime Minister Narendra Modi"

Mumbai, Feb 3

India's agreement with the United States to cut reciprocal tariffs is set to make a range of products -- from tech hardware to select agricultural imports -- cheaper in the country.

Tech hardware and components, including laptops, gadgets and consumer electronics, may become more competitively priced, while processed foods, packaged goods and household appliances could also benefit from lower import expenses, according to reports.

Agricultural products such as pulses, dairy and processed foods could see reduced import levies, easing some pressure from rising food inflation, reports said. However, official details regarding the terms and conditions of the deal from the government are awaited.

India-US trade paves way for reshaping trade flows between the world's two largest democracies, and Indian sectors such as textiles and apparel may benefit from tariffs cuts.

Gems and jewellery is another sector which is a huge export category from India, and is poised to gain from the trade deal. Industrial and engineering goods including steel and chemicals may also see smoother market access, though analysts said that some products such as steel, aluminium and copper will still face around 50 per cent duty.

Further, certain auto components may continue to face significant tariffs despite the new trade deal, they added.

India and the US reached a trade deal following a phone call between Prime Minister Narendra Modi and US President Donald Trump, cutting US tariffs on Indian goods to 18 per cent and easing Indian trade barriers on US products.

The agreement also reportedly included India's commitment to reduce purchases of Russian oil and increase imports from the United States and potentially Venezuela.

PM Modi also took to X and said, "Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement."

- IANS

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Reader Comments

R
Rajesh Q
Cheaper pulses and dairy imports could really help with the kitchen budget. Food inflation has been pinching everyone. This is a positive step, but we must also support our local farmers. The deal shouldn't hurt their livelihoods.
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Aman W
Great for exports like textiles and gems! This will create more jobs in Surat and Tiruppur. But the article says steel and auto components still face high duties. We need a more balanced deal that helps our manufacturing sector fully.
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Sarah B
Interesting to see the geopolitical angle with reduced Russian oil purchases. Strengthening ties with the US is strategic, but energy security is crucial. Hope the terms are favorable for India's long-term interests.
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Vikram M
"Made in India" getting better access to the US market is fantastic news for our MSMEs. The 18% tariff is a good start. Let's hope this boosts our export numbers significantly. Jai Hind! 🇮🇳
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Kavya N
I'll believe it when I see the price drop in stores. Often these deals sound good on paper, but the actual benefit to consumers is minimal. The government should monitor implementation closely.
M
Michael C
As someone who follows trade, this is a pragmatic move by both nations. Reducing trade barriers generally benefits

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