US companies could be the main beneficiaries of some of the tariff concessions announced by the Central government in the Union Budget 2026-27, notes New Delhi-based think tank Global Trade Research Initiative (GTRI).

The tariff exemptions that align with US strengths are  products that cater to sectors like aerospace, nuclear technology, clean energy equipment, electronics, and medical devices, and could quietly improve market access for US firms to India, the think tank states.

Duties on aircraft components and MRO inputs

In an analysis of the Union Budget 2026-27, GTRI notes that in civil and defence aviation, India has eliminated duties on aircraft components and MRO inputs, directly benefiting US aerospace firms and engine and maintenance suppliers.

Similarly, in nuclear energy, zero customs duty on nuclear-generation equipment, absorber rods, and project imports for all registered nuclear plants until 2035 provides rare long-term certainty for US nuclear equipment makers and technology providers, the think tank says.

The Budget also lowers barriers for US exports in clean energy, critical minerals, electronics, and health care. Duty-free imports of capital goods for lithium-ion cell manufacturing and of sodium antimonate used in solar glass reduce costs for US suppliers of advanced machinery and materials, it notes.

Zero duty on some cancer, high value medicines

In healthcare too, zero duty on some cancer and high value medicines, rare-disease medicines, and key medical-device components such as X-ray tubes and flat-panel detectors ease access for US pharmaceutical and med-tech exporters, it says.

“Taken together, these changes quietly help US in capital-intensive, technology-led exports to India”, says Ajay Srivastava, founder, GTRI.

Last year too, India had attempted to offer some ‘sops’ to US firms through tariff concessions, the most talked about reduction being the one on high value two wheelers. The Union Budget 2025-26 had reduced the tariffs on motorcycles with an engine capacity below 1,600cc from 50% to 40%, while for motorcycles above 1,600cc, the tariff was slashed from 50% to 30%. For the space sector, tariffs on ground installation for satellites, including spares and consumables, were reduced to zero last year.

Similarly, fish hydrolysate for the manufacture of aquatic feed, ethernet switches (Carrier-Grade), synthetic flavouring essences etc were some of the other products where tariff reduction was seen as benefiting US companies in the Budget 2025-26.