Tariffs cut to 18%, $500 Billion trade objective: India, US unveil interim trade pact
PTC News Desk: India and the United States on Saturday announced a plan for a temporary trade agreement, showing progress toward a larger trade deal after months of talks and recent disputes over tariffs. Under this new plan, tariffs imposed by Donald Trump on India will be reduced to 18 per cent.
In a joint statement, both countries said they would quickly put this plan into action and work toward finalising the temporary agreement, with the aim of completing a full Bilateral Trade Agreement (BTA) that benefits both sides. The plan shows their commitment to strengthening trade and economic relations.
As part of the agreement, India will reduce or remove tariffs on US industrial goods and several agricultural products such as animal feed grains, tree nuts, fruits, soybean oil, wine and spirits. In return, the US will cut tariffs on Indian exports to 18 per cent and remove tariffs on selected products like generic medicines, gems and diamonds, and aircraft parts, once the agreement is finalised.
Union Commerce and Industry Minister Piyush Goyal called the deal a major step forward. He said it will give Indian exporters access to a $30 trillion market and help small businesses, farmers and fishermen. He added that increased exports could create lakhs of new jobs, especially for women and youth.
Benefits for India:
Lower US tariffs on Indian goods, making it easier for Indian exporters to sell products in the US.
No tariffs on certain products like generic medicines, gems and diamonds, and aircraft parts, which will help Indian industries compete better.
Access to a huge US market, benefiting small businesses, farmers, fishermen, women and youth-led businesses.
More export opportunities in sectors like textiles, leather, plastic and rubber products, chemicals, handicrafts and machinery.
Exemptions for aircraft parts under US trade rules, making trade smoother.
Special access for certain auto parts through tariff quotas.
Better trade conditions for Indian generic medicines.
Protection for important farm sectors like wheat, rice, dairy, poultry and others, as India will not reduce tariffs on these products.
Measures to protect farmers and dairy producers from sudden import competition.
- With inputs from agencies
