India pays MFN rates with no Section 301 surcharges. GSP program lapsed in 2020. Here's what you actually pay on Indian imports — and how India compares to China.
India is a WTO member with Most Favored Nation (MFN) trade status — meaning it pays the same standard tariff rates as most other US trading partners. India does not face Section 301 punitive tariffs like China, making it an increasingly attractive sourcing alternative for categories where the 7.5–25% China surcharge is significant.
India is the world's 5th largest economy and a growing manufacturing hub, particularly in: pharmaceuticals, textiles, steel, chemicals, gems and jewelry, IT hardware, and engineering goods.
The Generalized System of Preferences (GSP) — which previously gave India zero-duty access on ~3,500 product categories — has been expired since December 31, 2020. India was also specifically removed from GSP in June 2019 due to market access disputes.
Congress has periodically considered reauthorization but as of 2025, GSP is not active. Until reauthorized, all Indian goods pay standard MFN rates rather than the historically lower GSP rates. Watch for Congressional action on GSP renewal.
All rates are MFN rates (standard WTO tariffs). GSP column shows what rate would apply if the program were reauthorized — relevant if sourcing decisions may be made over multi-year horizons.
| Category | HS Chapter | MFN Rate (current) | If GSP reinstated | AD/CVD? | vs. China |
|---|---|---|---|---|---|
| Pharmaceuticals (APIs) | 29 | 0% | 0% (same) | None | Same |
| Finished Drugs | 30 | 0% | 0% (same) | None | Same + 301 on Chinese |
| Textiles / Fabric | 50–60 | 4–14% | 0–4% (if reinstated) | None | Save 7.5–25% vs China |
| Apparel (T-shirts, Knits) | 61 | 12–32% | Not GSP eligible | None | Save 7.5–25% vs China |
| Gems & Jewelry | 71 | 5.5% | 0% (if reinstated) | None | Save 7.5–25% vs China |
| Leather Goods | 42 | 3.4–10% | 0–3% (if reinstated) | None | Save 25% vs China |
| Footwear (Leather) | 64 | 10–37% | Not GSP eligible | None | Save 7.5–25% vs China |
| Steel (Flat-rolled) | 72 | 0% + 25% Sec 232 | Same | AD + CVD some | Similar to China |
| Aluminum Extrusions | 7604 | 1.5% + 10% Sec 232 | Same | AD + CVD | Check AD order |
| Machinery | 84 | 0–3.9% | 0% (if reinstated) | None | Save 25% vs China |
| Electronics | 85 | 0–3.9% | 0% (if reinstated) | None | Save 7.5–25% vs China |
| Chemicals (Organic) | 29 | 0–6.5% | 0% (if reinstated) | None | Save 7.5–25% vs China |
| Plastics Articles | 39 | 0–6.5% | 0–3% (if reinstated) | None | Save 25% vs China |
| Carpets & Rugs | 57 | 3.7–8% | 0% (if reinstated) | None | Save 25% vs China |
| Shrimp / Seafood | 0306 | 0% | 0% (same) | AD Order — shrimp | Check AD rate |
| Honey | 0409 | 0% | 0% (same) | AD Order | Check AD rate |
Rates from USITC HTS 2025. GSP rates shown for reference if program reinstated — not currently applicable. AD/CVD rates vary by company and year. Consult USITC for current orders.
For most product categories, India offers meaningful tariff savings vs China due to the absence of Section 301 surcharges. However, longer transit times and different production capabilities mean this analysis requires full landed cost modeling.
| Product | India Effective Rate | China Effective Rate | India Advantage |
|---|---|---|---|
| Pharmaceuticals / APIs | 0% | 0% + 25% Section 301 = 25% | +25% |
| Gems & Jewelry | 5.5% | 5.5% + 7.5% = 13% | +7.5% |
| Leather Bags | 10% | 10% + 25% = 35% | +25% |
| Carpets | 3.7–8% | 3.7–8% + 25% = ~33% | +25% |
| Textiles | 4–14% | 4–14% + 7.5–25% | +7.5–25% |
| Apparel | 12–32% | 12–32% + 7.5–25% | +7.5–25% |
| Electronics | 0–3.9% | 0–3.9% + 7.5–25% | +7.5–25% |
| Chemicals | 0–6.5% | 0–6.5% + 7.5–25% | +7.5–25% |
| Steel (flat-rolled) | 25% Sec 232 + possible AD | 25% 232 + 25% 301 | ~25% if no India AD |
| Aluminum Extrusions | 10% 232 + AD/CVD | 10% 232 + 301 | Check AD orders |
India has a substantial number of active AD and CVD orders from the US — particularly in steel, chemicals, and certain agricultural products. Always verify before importing.
| Product | Type | Rate Range | Notes |
|---|---|---|---|
| Hot-Rolled Steel Flat Products | AD + CVD | 4.7–19.4% | Multiple reviews ongoing |
| Cold-Drawn Mechanical Tubing | AD + CVD | Varies | Check USITC |
| Aluminum Extrusions | AD + CVD | Varies by co. | A-533-871 |
| Certain Cut-to-Length Steel | AD + CVD | Varies | Annual reviews |
| Warm-Water Shrimp | AD | 2.34–10.17% | A-533-840 |
| Honey | AD | Varies | A-533-863 |
| Solar Cells & Panels | CVD | 14.5%+ | C-533-843 |
| Welded Stainless Steel Pipe | AD | Varies by co. | A-533-810 |
AD/CVD rates are company-specific and change annually. The rates listed above are illustrative ranges. Your supplier's specific rate depends on their company name as listed in the order. Use the USITC AD/CVD database and CBP's ADDS system to confirm current rates for your specific supplier.
Tariff savings are only part of the picture. To evaluate India sourcing, model: (product cost) + (ocean freight — often higher from India) + (tariff at current MFN rate) + (quality control/inspection cost) + (payment terms difference) + (lead time buffer inventory cost).
Use our landed cost calculator with your actual India vs China quotes to see if the switch makes economic sense for your specific SKU.
India-US trade relations are broadly positive and improving, driven by strategic alignment and supply chain diversification interest. Key developments:
If Congress reauthorizes GSP (multiple bills have been introduced), Indian goods in ~3,500 categories could return to 0% duty. This would significantly increase India's competitiveness for categories currently at 3–15% MFN rates: gems, textiles, chemicals, machinery, and more. If you're evaluating India sourcing, factor in the possibility of GSP reinstatement over a 2–3 year horizon.
Enter your HS code, product value, and freight costs. See exactly how much you save switching to India sourcing — tariff differences and full landed cost side by side.
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