All Things Policy Key Provisions in the India-US Trade Deal
Feb 24, 2026
Anisree Suresh, research analyst at the Takshashila Institution specializing in trade policy, walks through the India–US interim trade agreement. She outlines the tariff shift to 18% and its short-term relief for exporters. She discusses ambiguity around agricultural concessions, comparisons with other US deals in the region, and why this should be treated as a limited, strategic window rather than a final settlement.
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Interim Tariff Relief Preserves Market Access
- The interim US deal reduces punitive tariffs to about 18%, giving short-term relief to Indian exporters previously hit by 50% levies.
- This preserves market access for sectors like textiles, gems, and seafood and prevents abrupt exit costs while India rethinks export strategy.
Use The Window To Diversify And Fix Domestic Policy
- Use the interim window to rethink trade strategy rather than treat the deal as a permanent shield.
- Diversify export markets, pursue more FTAs, and fix domestic policies to boost competitiveness before relying on one partner.
Agriculture Stands Out As The Hard Political Problem
- Agriculture is the trickiest, politically sensitive part because India uses high tariffs and many non-tariff barriers to protect farmers.
- India historically imposed tariffs up to ~39–60% and sanitary, licensing, and GM restrictions that distort markets.