India has secured zero-duty access for silk exports to the United States under a landmark interim trade agreement, underscoring New Delhi’s breakthrough entry into the $30 trillion US market for imports and marking a major win for labour-intensive sectors.
Under the India-US Bilateral Trade Agreement, tariffs on a wide range of Indian products entering the U.S. have been cut sharply — with silk among the categories now eligible for 0 per cent duty, compared with previous levies as high as 50 per cent on certain textile segments.
The deal also lowers tariffs on other major export sectors, including textiles, gems and jewellery, and leather goods, increasing competitiveness for Indian producers in the world’s largest consumer market and offering enhanced opportunities for MSMEs and exporters.
Industry leaders and trade officials said the tariff relief would help India reclaim market share and secure new contracts with U.S. buyers, particularly for speciality silk products and value-added garments. Free access to the lucrative U.S. market could also attract fresh investment and support job growth in export hubs such as Tamil Nadu, Karnataka and West Bengal.
While sensitive agricultural and dairy products remain protected under the pact, a significant portion of India’s merchandise exports — including agricultural items such as spices, tea and coffee — has won zero-duty entry or reduced tariffs, further widening export opportunities.
The interim trade framework, agreed after sustained negotiations between New Delhi and Washington, is seen as a step toward deeper economic integration and a resetting of trade ties, with continued discussions planned to expand market access further.
Background — What the Deal Means for Exports
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Zero duty for silk and other key products boosts Indian competitiveness in high-value U.S. markets.
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Import duties on many Indian exports are now capped at broadly lower levels, supporting broader diversification.
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Sensitive goods such as dairy and cereals are excluded from concessions to protect domestic producers.
Economists say the tariff cuts could help India sharpen its global export strategy at a time when global trade competition remains intense, particularly with regional rivals whose exporters face comparatively higher tariffs in the U.S. market.