- India protects staple crops, dairy, spices, tea, and sensitive fruits from tariff cuts
- Tariffs are reduced on machinery, electricals, vehicles, tech hardware, non-sensitive foods
- US will cut tariffs to 18% on Indian textiles, pharmaceuticals, gems, aircraft parts
Commerce Minister Piyush Goyal on Saturday assured that the new India–US trade deal will not hurt Indian farmers, dairy producers or rural jobs. He said the government has secured a tariff structure that protects the country's most sensitive food sectors while unlocking wider export opportunities for Indian manufacturers, tech producers and labour‑intensive industries.
According to him, India “faces lower US tariffs than many competing economies” after Washington cut duties on several Indian products from around 50 percent to a uniform 18 percent. At the same time, India has not opened its doors to any US farm exports that could threaten domestic livelihoods.
The agreement, he said, “keeps farmers fully protected while widening India's export room in high‑value sectors.”
1. What India Has Fully Protected
These are the categories where India gives zero tariff concessions. Duties stay exactly as they are. This forms the core of the government's political messaging.
Staple crops and core food items
India keeps full protection on essential food lines that support millions of farmers.
- Wheat
- Rice
- Maize
- Soya and oilseeds
- Poultry and several meat categories
- Ethanol
- Tobacco
These remain with high duties and no new access for US exporters.
2. India's entire dairy sector
Labelled as “100 percent secure”.
- Milk (all forms)
- Cheese
- Butter
- Ghee
- Cream
- Yoghurt
- Buttermilk
- Whey
- Paneer
The government says there is “no market opening” for US dairy at all.
3. Vegetables, fruits and processed foods
A long list of fresh, frozen, dried and canned products stays fully protected.
Fresh vegetables
Potatoes, garlic, mushrooms, gourds, okra, green pepper, peas, beans, pumpkins and many others.
Processed vegetables
Frozen potatoes, peas and beans, mixed vegetables, canned items, preserved cucumbers and mushrooms.
Dried vegetables and pulses
Dried onions and garlic, dehydrated powders, green peas, kabuli chana, beans, sweet potatoes.
Sensitive fruits
Bananas and banana products.
Mangoes and mango products.
Citrus fruits like oranges, lemons, limes and grapefruit.
Berries including strawberries.
US-India trade deal
Photo Credit: ndtv
4. Spices and India's flavour heritage
Black pepper, cloves, chillies, cinnamon, coriander, cumin, turmeric, ajwain, fenugreek, mustard, cassia and related spice products.
5. Tea
Black tea, green tea and tea bags remain protected to safeguard India's iconic tea industry.
Bottom line: Agriculture, dairy, spices and tea remain untouched.
2. Where India Is Cutting Tariffs for US Imports
These are sectors outside sensitive farm lines.
1. Industrial and manufactured goods
India reduces or eliminates tariffs on:
- Machinery
- Electricals
- Vehicles and components
- Chemicals
This aligns with India's push for manufacturing and exports.
2. Technology, data‑centre and semiconductor hardware
India lowers duties on:
- High‑end servers
- AI hardware and GPUs
- Data‑centre equipment
- Semiconductor inputs
This is meant to make India's tech and AI infrastructure cheaper and more competitive.
3. Non‑sensitive agricultural and food items
These are mostly consumed by higher‑income households and do not threaten small farmers.
- Dried distillers grains
- Red sorghum
- Tree nuts
- Soybean oil
- Select fruits
- Wines and spirits
3. What the US Is Giving India in Return
The US will apply a uniform 18 percent tariff on a wide set of Indian exports that previously faced much higher duties.
Sectors that benefit
- Textiles and apparel
- Leather and footwear
- Plastics and rubber goods
- Home décor and carpets
- Machinery and chemicals
- Artisanal goods
- Pharmaceuticals
- Gems and diamonds
- Aircraft parts
The US is also rolling back earlier metal‑security tariffs on some Indian products.
4. Where Alcohol Fits Into the Deal
Alcohol is firmly in the opened category, not the protected one. It does not compete with Indian farmers and therefore does not sit in the sensitive list.
Tariff changes
Imported whisky, gin, rum and similar spirits earlier faced about 150 percent duty. Under the new India–US and India–EU frameworks, this is expected to fall to 30 to 40 percent.
Impact on prices
A mid‑range Scotch or Bourbon costing about Rs 4,500 in Mumbai could drop to roughly Rs 2,500 to Rs 3,000 once the new rates take effect.
Who benefits
- EU: Scotch and Irish whiskey brands gain scale at lower price points.
- US: Bourbon makers like Jack Daniel's and Jim Beam become competitive with European whisky instead of sitting in a higher bracket.
Impact on consumers
Lower duties make it viable to import bottled‑at‑origin spirits. This improves quality and choice for consumers.
Impact on Indian craft spirits
Indian craft whisky and gin brands may face pricing pressure and will need stronger differentiation through storytelling, flavour and heritage.
