India Wins Zero Duty Access for Smartphones, Spices in Historic US Trade Deal

In a major win for "Make in India," Commerce Minister Piyush Goyal on Saturday announced that a vast array of Indian products—ranging from smartphones to spices—will now enter the United States at zero duty. Under the newly unveiled India-US interim trade framework, Washington has slashed effective tariffs on most Indian goods from 50% to 18%, while completely eliminating duties on high-value priority sectors.

The deal positions India as a more attractive trade partner than regional rivals, with China facing 30-35% tariffs and Bangladesh at 20%.

Zero Tariff Product Categories

Minister Goyal detailed specific sectors that will bypass the 18% cap to enjoy complete duty exemptions, a move expected to boost India's export competitiveness by billions of dollars annually:

High-Tech & Manufacturing

Smartphones, aircraft parts, and generic pharmaceuticals valued at $13 billion

Luxury & Precious Metals

Gems and diamonds, platinum, clocks, and watches

Agriculture & Produce

Spices, tea, coffee, cashew nuts, mangoes, bananas, avocados, and pineapples

Specialty Goods

Silk products, coconut oil, vegetable wax, mushrooms, and select bakery items

India's "Red Lines" Protected

While securing duty-free access for Indian farmers, Goyal emphasized that domestic agricultural interests remain untouched:

No US Genetically Modified (GM) products will be allowed into India

Sensitive sectors including dairy, poultry, rice, wheat, and sugar remain fully protected

No tariff concessions granted for US agricultural staples

"We have not included any item where an Indian farmer will be hurt," Goyal asserted. "Indian agricultural products will reach US shores at zero duty, but we have granted no reciprocal access for US agricultural staples."

$500 Billion Strategic Commitment

The interim pact precedes a full Bilateral Trade Agreement. India will purchase $500 billion in US energy, aircraft, technology (including AI-ready GPUs), and coking coal over five years, securing exemption from Section 232 tariffs on steel and aluminum components.