India and the United States have reached a major trade understanding to lower tariffs and expand two-way commerce. The US will reduce duties on Indian goods from 50% to roughly 18%. In return, India will buy around 100 billion US dollars of American goods every year for five years, mainly energy products, aircraft and parts, technology items and some farm products. Sensitive sectors such as dairy, genetically modified crops, poultry and cereals remain shielded. The pact is meant to widen market access and deepen economic and strategic ties.