India-US Trade Pact Phase I American Wines and Dry Fruits to Get Cheaper

Duty cuts to reshape India–US trade flows

India is set to lower import duties on a range of American goods, including wines, spirits and dry fruits, following the finalisation of the first phase of a bilateral trade agreement with the United States. The move is expected to make several premium US products more affordable for Indian consumers while giving fresh momentum to trade relations between India and the US.

Framework agreement and rollout plan

The two countries have concluded the framework for Phase I of the trade pact, which will now be converted into a legally binding agreement. Officials indicated that the signing is likely by mid-March. Once implemented, tariff reductions will come into force immediately for some products, while others will see duties lowered gradually under a phased schedule.

Products covered under tariff concessions

Under the agreement, India will eliminate or substantially reduce import duties on all US industrial goods and a broad basket of agricultural and food items. Key products include dried distillers’ grains, red sorghum used as animal feed, soybean oil, fresh and processed fruits, and alcoholic beverages such as wines and spirits.

Tree nuts such as walnuts, almonds and pistachios, along with select lentils, will also benefit from lower tariffs. In addition, high-end US automobiles and motorcycles will receive calibrated duty concessions, improving access to the Indian market.

Tackling non-tariff trade barriers

Beyond tariff cuts, both sides have committed to addressing long-standing non-tariff barriers. India will simplify import licensing norms affecting US medical devices and Information and Communication Technology products, which are critical for healthcare, data centres and industrial use. Similar efforts will be undertaken to ease regulatory hurdles in food and agricultural imports.

Important Facts for Exams

• The agreement is a phased bilateral trade pact between India and the US

• Tariff cuts cover industrial goods, farm products and alcoholic beverages

• Non-tariff barriers on medical devices and ICT goods will be streamlined

• Some concessions are quota-based or phased over time

• Trade pacts balance market access with domestic safeguards

Reciprocal gains and protective safeguards

The Commerce and Industry Ministry has emphasised that market access has been opened in a calibrated manner to safeguard domestic farmers and MSMEs. Sensitive products such as apples will continue to be protected through minimum import price mechanisms.

In return, Indian exports to the US—including spices, tea, coffee, cashew, coconut products, fruits, nuts and processed foods—are expected to face zero reciprocal tariffs, significantly expanding opportunities for Indian producers in the American market.