‘98–99% Tariffs Will Go to Zero’: India Set for Massive Industrial Market Opening Under US Trade Deal

The long-discussed India–United States trade agreement has moved a decisive step closer to completion, with US Trade Representative Ambassador Jamieson Greer describing the pact as a landmark opportunity for both nations. Speaking in a televised interview on Tuesday, Greer confirmed that negotiators from both sides have reached agreement on the structure and substance of the deal, while the final legal documentation is currently being prepared.

According to Greer, the agreement is expected to unlock unprecedented access to the Indian market for American exporters, even as India retains safeguards for select strategic sectors. Expressing confidence in the outcome, he indicated that negotiations have moved beyond uncertainty and into execution mode.

“This is the moment we’ve been working toward. The framework is settled, the details are known, and what remains is putting everything on paper. It’s an extremely exciting prospect for both countries,” Greer said.

Calling the pact a significant win for Washington, Greer clarified that the US will continue to impose tariffs of roughly 18 percent on Indian imports, largely due to the persistent trade imbalance between the two economies. At the same time, India has agreed to substantially lower its own duties on a broad range of American products, marking a major shift in trade dynamics.

He noted that Indian tariffs on industrial goods—currently averaging around 13.5 percent—will be nearly eliminated under the agreement. “For almost all industrial products, around 98 to 99 percent, those tariffs will effectively be reduced to zero,” he explained, highlighting the scale of market opening.

Agricultural trade is also set to see sweeping changes. Greer said duties on numerous US farm and food products will be removed, covering categories such as nuts, fruits, vegetables, wines, and spirits. These changes, he added, would provide American farmers and producers with long-awaited access to one of the world’s largest consumer markets.

Despite the extensive liberalisation, Greer stressed that India would continue to protect certain sensitive and politically important sectors, a practice common to all major economies. “Every country, including the United States, preserves safeguards in key areas. India will do the same, and discussions on access will continue,” he said.

Beyond tariffs, the agreement also addresses long-standing non-tariff barriers that have limited US exports. Greer confirmed that both sides have reached an understanding on reducing technical and regulatory hurdles, including greater recognition of American safety and quality standards.

He acknowledged that India would continue to follow its domestic regulatory processes but said the pact establishes a clear pathway for smoother acceptance of US-approved products.