American Wines, Motorcycles and Medical Devices Set to Benefit from India-US Interim Trade Pact
New Delhi: India and the United States have finalised the framework for an interim trade agreement that will significantly reduce or eliminate import duties on a wide range of American goods, including wines, motorcycles, medical devices and select agricultural products. Government sources confirmed that the framework was concluded on February 7, with the formal agreement expected to be signed in March 2026.
Under the proposed pact, India will cut or remove tariffs on all US industrial goods and a broad basket of agricultural items. These include dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wines, spirits and other products.
Wines and Spirits to Get Duty Relief
India will reduce import duties on American wines and spirits through a Minimum Import Price (MIP) mechanism. The MIP system sets a price floor for imports, preventing under-invoicing while allowing tariff reductions to benefit genuine trade. Officials said this approach balances market access for US exporters with protection for India’s domestic liquor industry.
Fruits, Nuts and Lentils Included
Tariff concessions have been granted on selected American fruits and nuts such as almonds, walnuts, pistachios and apples. While some concessions will apply immediately, others will be phased in over time.
To safeguard Indian farmers, sensitive items like apples will be covered under a quota system, with import duties capped at 25 percent within the quota and a higher minimum import price of ₹80 per kilogram.
Certain lentils will also be allowed under tariff-rate quotas (TRQs), enabling imports at lower duties up to specified limits.
Harley-Davidson Bikes to Enter Duty-Free
One of the most notable outcomes of the deal is for American motorcycles. Harley-Davidson bikes in the 800–1,600 cc category will be allowed into India duty-free from day one. Tariffs on other high-end US vehicles will be reduced, while electric vehicles remain excluded from the agreement.
Boost for Medicines and Medical Equipment
The interim pact also covers a wide range of pharmaceuticals, including medicines used in cancer, cardiac, neurological and paediatric care.
Several medical devices—such as pacemakers, laparoscopes, diagnostic instruments, imaging equipment and X-ray components—will see duty reductions. Some of these concessions will be introduced gradually to allow regulatory alignment.
Cotton and Animal Feed
India has agreed to duty concessions on American extra-long staple cotton through TRQs, citing limited domestic availability. Limited access has also been granted for US-origin DDGs, which are used in animal feed. Officials said this move would support India’s poultry and livestock sectors without flooding the domestic market.
What’s Excluded
The agreement does not include tariff concessions on electric vehicles, genetically modified crops or sensitive agricultural and dairy products. Staples such as rice, wheat, maize, millets, soyabean and dairy items like milk, cheese and butter remain protected. Poultry, meat, ethanol, tobacco and several fruits and vegetables are also outside the deal’s scope.
Next Steps
Officials said the interim trade pact is designed as a stepping stone toward a broader bilateral trade agreement. Once signed, the deal is expected to strengthen India-US economic ties while carefully balancing domestic industry and farm sector interests.
(Except for the headline, this story has not been edited by Bharatiya News staff and is published from a syndicated feed.)