45% of Indian exports to the U.S. will not face new 10% tariffs, says Commerce Ministry

📌 Summary:

• The government said (July 25, 2026) that about 45% of India's exports to the U.S. remain OUTSIDE the purview of the new 10% tariff Washington has levied on imports
• India remains engaged with the U.S. on a quota-based system for India's textile exports to the U.S.
• The move cushions a significant share of Indian exporters from the tariff shock, though sectors within the taxed 55% (and textiles pending a quota deal) face pressure
• Signals continued India-U.S. trade negotiation amid a protectionist tariff environment

🎯 UPSC Relevance: GS2/GS3 — India-U.S. bilateral trade relations, external sector, impact of protectionism and tariffs on India's exports and the trade balance.

📝 Prelims Facts:

• ~45% of India's exports to the U.S. are exempt from the new 10% U.S. tariff
• A quota-based system is under discussion specifically for Indian textile exports
• The U.S. is one of India's largest export destinations

🔑 Key Term: Tariff quota (tariff-rate quota) — a trade mechanism allowing a set quantity of imports at a lower/zero tariff, with higher tariffs applying to volumes above the quota.