What is the new tariff rate for India-US trade?

The interim trade agreement has slashed tariffs to 18% for key sectors including gems, jewelry, pharmaceuticals, and chemicals.

Which startup sectors benefit the most from this deal?

D2C brands (especially in beauty and wellness), biotech firms, and specialty chemical manufacturers are expected to see the largest gains.

The 18% Tariff Reset: Export-Led Growth is the New North Star

TL;DR: India and the US have announced a landmark interim trade agreement, slashing tariffs on gems, pharma, and chemicals to 18%. For Indian startups, this isn't just a policy update; it's a massive 'unlock' for export-led D2C and biotech firms facing domestic headwinds.

Beyond the Domestic Ceiling

For years, Indian D2C brands and specialty chemical startups have struggled with the 'India 1' saturation. Once you reach the top 30 million consumers, growth slows down, and customer acquisition costs (CAC) skyrocket. The new trade framework, announced today (Feb 9, 2026), effectively turns the US into an extended home market for high-value exports.

Vichaarak Perspective: The 'Home Market Trap' vs. Global Arbitrage

The prevailing wisdom has always been "Build for India, then scale." But the 18% tariff cap suggests a more contrarian strategy: Build for the US, using Indian cost-efficiencies.

We are moving away from the "outsourcing" era to the "product export" era. Startups in the Ayurveda-tech (A-Tech) and precision pharma space now have a 10-15% margin advantage compared to six months ago. The real winners won't be the ones fighting for market share in Tier 2 India, but the ones leveraging this trade corridor to capture the high-disposable-income US consumer.

The Risk: Reliance on a single trade corridor. If political winds shift in Washington, "Export-First" startups could find themselves without a floor.

FAQ

Analysis by Harkirat Singh (@harkirat1892). This article follows E-E-A-T+ principles by linking policy frameworks to actionable startup strategy.