Over 40% Of India's US Exports Are Already Duty-Free

(MENAFN- KNN India) New Delhi, Feb 5 (KNN) More than two-fifths of India's merchandise exports to the United States already entered the US market duty-free even before the recent bilateral trade agreement announced by the two countries this week, according to official government data for April–November 2025.

Zero-Duty Exports Lead the Pack

Indian shipments to the US that attract zero tariffs accounted for 44 percent of total exports during the April–November period, or USD 25.91 billion out of USD 58.99 billion in total exports, reported Business Standard.

Key zero-duty imports were led by electronics, including smartphones (USD 16.7 billion), followed by pharmaceuticals such as bulk drugs (USD 6.18 billion), petroleum products (USD 2.7 billion), and tea, coffee and spices (USD 254 million).

Electronics exports recorded especially strong growth, rising about 120 percent in April–November 2025, with smartphone exports, led by Apple iPhones, soaring roughly 200 per cent to USD 12.54 billion.

Calendar-year figures show that electronics, pharmaceuticals and petroleum products together accounted for around 41.8 percent of India's USD 78.49 billion in exports to the US that entered without duty.

Offset to Tariff Challenges

Robust growth in these zero-duty segments helped offset declines in sectors hit by punitive US tariffs, such as gems and jewellery, textiles, and automobile components, enabling overall exports to the US to grow by about 11.3 percent in April–November 2025.

Outlook Under the Trade Deal

With the new India–US trade agreement expected to lower tariffs across the board from 50 percent to 18 percent, exporters expect further improvement in export performance, particularly in sectors previously constrained by high duties.

(KNN Bureau)

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