India, Feb. 7 -- India may adopt a three-pronged calibration while reducing tariffs for American imports, granting immediate zero duty access to non-conflicting sectors, quota and phased duty cuts for sectors that can coexist, and completely excluding highly sensitive items such as dairy, cereals, and genetically modified food items, people in the know said on Friday.

In return, the US may slash tariffs on one-third of $87 billion Indian merchandise exports from 50% to 18% immediately after the two countries finalise a joint statement and an executive order is issued, they said, requesting anonymity.

Most of these items belong to labour-intensive sectors such as textiles, leather goods and marine products, where India does not compete w...