US Tariffs: Indian Exports to Remain Duty-Free for Over $34 Billion

US Tariff Measures Leave $34.27 Billion in Indian Exports Duty-Free

Total US imports from India stood at $87.7 billion in 2024, with approximately $34.27 billion remaining exempt under the revised tariff framework. Within this, $5.77 billion in civil aviation-related exemptions are accounted for.

The proposed tariff measures under Section 122 of the Trade Act of 1974 allow for duties of up to 15 percent for up to 150 days. These measures preserve exemptions for pharmaceuticals and electronics, while adding new carve-outs such as civil aviation products. The exemptions were under negotiation as part of the interim trade discussions between India and the US, scheduled for conclusion in March.

Key Exempted Product Categories

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The top 10 exempted product categories account for nearly $24 billion, or about 70 percent of all duty-free trade under the proposed structure.

• Pharmaceuticals dominate the list, with medicaments in dosage form packaged for retail accounting for over $10.6 billion in exports.
• Electronics and telecom equipment represent the next-largest segment, with smartphone exports amounting to nearly $6.8 billion.
• Petroleum products and engineering goods also form a sizeable portion of the exempted trade, with refined petroleum exports contributing significantly.