Why Is India Getting Special Tariff Treatment from the US at 20% While Others Pay 50%?

US-India Trade Deal: Key Highlights
Preferential Tariff Status: While Vietnam faces 20% tariffs and Myanmar 50%, India’s proposed rate could be under 20%, giving exporters a major advantage.
Strategic Negotiations: India refused concessions on GM crops and protected farmers, focusing instead on digital trade and pharmaceuticals.
Geopolitical Balancing: As a BRICS member, India walks a tightrope between US trade benefits and China-aligned bloc pressures.
Interim Deal as a Bridge: A full trade pact is expected only by 2025–26, but this agreement shields Indian industries from sudden cost hikes.


Why This Matters for Competitive Exams (SSC, PSC, NID, etc.)
Current Affairs: Trade policies frequently feature in GK sections of SSC, PSC, and banking exams.
Economic Impact: Understanding tariffs helps in exams testing India’s economic policies (e.g., UPSC, State PSCs).
Global Relations: Questions on BRICS, US-India ties, and protectionism appear in essay and interview rounds.
Sectoral Growth: Textiles, pharma, and electronics—key sectors in this deal—are hot topics for NID, NIFT, and FDDI entrance exams.


Sample Q&A for Exam Prep
Q: What is the proposed tariff rate for India under the US interim trade deal?
A: Below 20%, lower than Vietnam (20%) and Myanmar (50%).
Q: Which sectors will benefit most from the US-India trade agreement?
A: Textiles, electronics, and pharmaceuticals.
Q: Why did India refuse US demands on GM crops?
A: To protect farmers and maintain agricultural sovereignty.
Q: How does this deal position India geopolitically?
A: It balances US trade benefits with BRICS commitments, avoiding anti-American tariff penalties.
Q: When is the full US-India trade pact expected?
A: Late 2025 or early 2026.