India Tariffs 2026: US-India Trade Duty Guide

Updated March 25, 2026 · MFN & GSP tariff data · USITC HTS Revision 4

India is the 10th largest source of US imports and a critical supplier of pharmaceuticals, textiles, software services, and steel. Unlike Mexico and Canada, India does not have a comprehensive free trade agreement with the US. However, India does qualify for the Generalized System of Preferences (GSP) program, which provides duty-free or reduced rates on eligible products.

This guide explains India's tariff situation, GSP benefits, key industries, and how to look up rates for Indian imports.

Key point: Most Indian products face standard MFN rates (0-15%). However, GSP benefits reduce or eliminate duties on thousands of products—if eligible. Textiles face higher rates (15-30%). Pharmaceuticals typically enjoy low rates (0-3%).

GSP Program: Duty-Free Benefits for India

India has been designated as a GSP-eligible country since 1975. This means thousands of Indian products can enter duty-free or at reduced rates:

How GSP Works

Eligible products: Roughly 5,000 product categories qualify for GSP duty-free treatment (out of 28,000+ HTS codes)
Documentation: Exporter provides GSP Certificate of Origin (GFOP) to claim benefits
Rules of origin: At least 35% of product value must come from India
Verification: US Customs can request documentation proving GSP eligibility

Current GSP Status for India (2026)

As of March 2026, India maintains full GSP eligibility. However, this is subject to periodic review. The US has threatened GSP removal for India over labor, environmental, and intellectual property concerns, but these have not resulted in withdrawal as of 2026.

Common GSP-Eligible Products from India

Chemicals & compounds: Many industrial chemicals (HTS 28-38)
Gemstones & precious metals: Cut diamonds, processed gems (HTS 71)
Textiles (select items): Some yarn and fabric (not finished apparel) (HTS 50-55)
Agricultural products: Many spices, nuts, plant materials (HTS 07-15)
Footwear components: Shoe uppers and parts (not finished shoes) (HTS 64)
Steel products (select items): Some specialized steel

Products NOT Eligible for GSP

India cannot use GSP for:

Textiles finished apparel (HTS 61-62) — always face MFN rates 15-32%
Most leather apparel and footwear — face MFN rates 8-20%
Automobiles and auto parts (with limited exceptions)
Electronics (with limited exceptions)

Important: GSP eligibility can change. The US reviews GSP annually and can remove countries or products. Monitor Tariff Check's Trade Updates for any GSP status changes for India.

Standard MFN Rates for Indian Products

Products that don't qualify for GSP face standard MFN rates:

Product Category	Typical MFN Rate	GSP Rate (if eligible)
Machinery & Electronics	0-2.5%	0% (many eligible)
Chemicals & Industrial	0-6.5%	0% (many eligible)
Pharmaceuticals & Drugs	0-3%	0% (many eligible)
Textiles (finished apparel)	15-32%	Not eligible (GSP covers only yarn/fabric)
Footwear	8-20%	0% (components only, not finished shoes)
Spices & Herbs	0-5%	0% (many eligible)
Steel & Aluminum	0-15%	0% (some eligible), but Section 232 may apply

Key Industries & Tariff Rates

Pharmaceuticals (Critical Sector)

India is the world's largest supplier of generic pharmaceuticals and a major API (active pharmaceutical ingredient) exporter:

Finished pharmaceuticals: 0-3% MFN, often 0% with GSP
Active pharmaceutical ingredients (APIs): 0-3% MFN, often 0% with GSP
Vitamins & supplements: 0-8% MFN, varying GSP eligibility
Medical devices: 0% typically, some GSP eligible

Textiles & Apparel (Large Sector, High Tariffs)

India is a major apparel and textile exporter, but faces the highest tariffs:

Cotton yarn: 0-9.5% MFN, 0% often with GSP
Woven cotton fabric: 6-15% MFN, varies with GSP
Finished cotton apparel (shirts, pants, etc.): 15-32% MFN (not GSP eligible)
Synthetic apparel: 18-32% MFN (not GSP eligible)
Knit apparel: 16-32% MFN (not GSP eligible)

Impact: Finished apparel from India is more expensive than from Mexico/Canada due to higher tariffs and no trade agreement.

Chemicals & Industrial Products

Industrial dyes & pigments: 0-10% MFN, often 0% with GSP
Specialty chemicals: 0-6.5% MFN, many 0% with GSP
Plastics resins: 0-6% MFN, often GSP eligible
Rubber products: 0-8% MFN

Technology & Electronics (Moderate Tariffs)

Semiconductors & chips: 0% MFN typically, some GSP eligible
Computer components: 0-2.5% MFN
Mobile phone components: 0-4% MFN (rates vary by component)
LED lights & displays: 0-4% MFN, some GSP eligible

Steel & Metals

Stainless steel products: 7.7-15% MFN (Section 232 may apply)
Steel fasteners & hardware: 6-12% MFN
Specialty alloy steel: 0-15% MFN, some GSP eligible
Aluminum products: 0-8% MFN (Section 232 may apply)

Section 232 Steel & Aluminum (Additional Duty)

Like all countries, India's steel and aluminum products may face Section 232 additional duties:

Steel: 25% additional duty may apply on top of MFN rate
Aluminum: 10% additional duty may apply on top of MFN rate
Applicability: India has a quota exemption for some steel, but not all products qualify. Verify with customs broker.

2026 Updates & Trade Relations

GSP Review Status

The US conducted its annual GSP review in early 2026. India's GSP status was maintained, but concerns about labor standards (minimum wage enforcement in manufacturing) and environmental compliance were noted. Watch for potential changes in 2027.

Trade Negotiations

The US and India have been negotiating bilateral trade improvements since 2022. As of March 2026, no comprehensive free trade agreement has been finalized, though sector-specific talks continue. Any agreement would likely provide additional tariff reductions for Indian goods.

Import Surcharge (February 2026)

The new across-the-board import surcharge applies to Indian products as well, adding 2-4% to effective duty rates. Indian products that don't qualify for GSP are most affected.

Look Up India Tariff Rates

Search our 28,000+ HTS codes to verify current rates and GSP eligibility for Indian products.

Search HTS Codes Now

FAQ: India Tariffs & GSP 2026

Q: How do I verify if a product qualifies for India's GSP?

Search the HTS code in Tariff Check. If the GSP rate is listed and lower than the MFN rate, it's eligible. Your Indian supplier can provide a GSP Certificate of Origin (GFOP) to claim the benefit. US Customs verifies eligibility at entry.

Q: Why are Indian textiles and apparel so expensive compared to Mexican goods?

Indian finished apparel faces 15-32% MFN tariffs and does NOT qualify for GSP. Mexican apparel under USMCA faces 0% (with rules of origin met). This makes Indian clothing significantly more expensive. Textiles from both countries face tariffs, but USMCA preference gives Mexico an advantage.

Q: Can India's GSP status be removed?

Yes. The US can remove GSP benefits if a country fails labor, environmental, or IP protection standards. India's GSP status was reconfirmed in 2026, but concerns about minimum wage enforcement have been noted. Monitor updates for any changes.

Q: What pharmaceuticals from India enter duty-free?

Most generic pharmaceuticals and active pharmaceutical ingredients (APIs) qualify for 0% GSP treatment. Finished drugs typically enter at 0% MFN anyway. Vitamins and supplements have varying GSP eligibility—check the specific HTS code.

Q: Does India have a free trade agreement with the US?

No. There is no comprehensive US-India FTA as of March 2026, though negotiations have been ongoing. India benefits from the GSP program, which covers ~5,000 product categories duty-free, but this is less broad than USMCA coverage for Mexico and Canada.

Q: Does Section 232 apply to Indian steel?

India has a quota exemption for some steel under Section 232, but not all products qualify. Steel fasteners, stainless steel, and some specialty products may not qualify for the exemption. Verify with a customs broker for your specific product.

Disclaimer: This guide is for informational purposes only and does not constitute legal or trade advice. GSP eligibility and tariff rates are subject to change. The US reviews GSP annually and can modify country or product eligibility. Always verify current rates and GSP status with a licensed customs broker before making import decisions. Tariff Check is not liable for errors, omissions, or financial consequences resulting from use of this information.