India has been placed in the lower 10% tariff bracket under US Section 301 measures, according to the government. The move means a significant share of Indian goods entering the American market will face an added duty, but not all exports are affected.

Government estimates indicate that about 45% of India’s exports to the US remain outside this additional tariff. The remaining 55% of shipments are expected to attract the extra 10% duty under the Section 301 framework.

The measures are linked to US concerns over alleged forced labour issues. Even so, India being kept in the lower tariff bracket suggests a comparatively lighter impact than a higher-duty category would have created for exporters and trade flows.

The development is important for businesses tracking India-US trade, as the tariff split will shape cost calculations for exporters serving the US market. Much will depend on which product segments fall within the additional duty and how companies adjust pricing, sourcing and shipment plans.