India has finally stepped out from under the shadow of steep US tariffs.

After months of uncertainty, duties on Indian goods headed to the United States are set to drop to 18 percent. That is lower than the 26 percent rate announced last year and marginally better than what Vietnam faces. For Prime Minister Narendra Modi, the outcome is politically useful. It signals that sustained negotiations with President Donald Trump delivered results.

But the announcement leaves a larger question unanswered. What exactly has India committed to in return?

Pressure forced a reset in trade thinking

The risk of losing access to its biggest export market jolted New Delhi out of its comfort zone. India moved faster on trade talks that had stalled for years, including deals with the UK and the European Union. Some long standing non tariff barriers, especially around quality norms, are being relaxed.

This shift reflects necessity rather than ideology. The US remains central to India’s export economy, from manufacturing goods to software services. Any disruption would have had direct budget and growth implications.

Energy commitments are still unclear

One of the biggest gaps between the two leaders’ statements lies in oil purchases. Trump has said India will stop buying Russian crude and increase imports from the US and possibly Venezuela. India’s official response does not confirm this.

That distinction matters. Discounted Russian oil has helped contain fuel costs at home. A sudden change would test energy security. While some private refiners, including those linked to Mukesh Ambani, can process US or Venezuelan feedstock, public refiners supply most of the country’s fuel demand.

There is also the Iran question. Any move towards Iranian oil risks fresh US penalties. Until details are public, the energy trade off remains unresolved.

Big promises, limited clarity

Trump has claimed India will move towards zero tariffs on US goods and commit to buying more than $500 billion worth of American products across energy, technology and agriculture.

Whether this includes defence equipment, advanced AI chips, or changes to e commerce rules affecting companies like Amazon is not yet known. These choices would have long term implications for domestic industry and competition.

Agriculture could trigger political pushback

Trade liberalisation is always hardest in farming. Allowing genetically modified imports or US farm products while Indian farmers remain restricted at home would be politically sensitive.

India still limits exports of key crops like wheat, a policy introduced after global food prices surged in 2022. Any perception that foreign producers are being favoured over local farmers will draw scrutiny from opposition parties.

Visas may matter more than goods

For India’s urban workforce, access to the US job market is as important as tariff relief. Indians receive a majority of H-1B visas, and any easing of costs or restrictions would play well domestically.

India has already secured more flexible work pathways in Europe, but the US remains the preferred destination. Even a small concession here could be one of the most valuable outcomes of the talks.

Headline win, pending fine print

The tariff rollback reduces immediate economic risk and offers the government breathing space. But until the agreement is formally signed and its details disclosed, the true cost and benefit of the deal cannot be assessed.

For now, this is a diplomatic success with several open tabs. How those are settled will determine whether the deal reshapes India’s trade position or merely buys time.