India-US Trade Deal Phase 1: 18% Tariff on $30 Billion Exports, Agriculture-Dairy Safe

• India and the US have reached an agreement on the first phase of a bilateral trade deal, with a joint statement and signing process to follow.
• Indian exports worth approximately $30 billion will now face an 18% tariff, a significant reduction benefiting labor-intensive sectors like textiles, leather, and gems & jewelry.
• India plans to make strategic purchases of around $500 billion from the US over the next five years, including crude oil, LNG, aircraft, and high-tech products.
• Products worth $44 billion, including pharmaceuticals and mobile phones, will continue to be tariff-exempt.
• India has maintained its 'red line' on sensitive sectors like agriculture and dairy, ensuring no compromise on existing policies.

Why It Matters: The India-US Phase 1 trade deal reduces tariffs on key Indian exports while safeguarding agriculture and dairy sectors.