In the India-US trade deal, the US will reduce tariffs to zero on many Indian products, which will benefit exports worth ₹4 lakh crore. India will also remove tariffs on American industrial products and fruits, but will protect its key agricultural sector.
Washington: America will reduce tariffs to zero on many more products coming from India. With this, exports worth Rs 4 lakh crore will get the benefit of zero tariff. India will provide protection to its main agricultural products. Products like rice, wheat, corn, grains, genetically modified crops, soy and meat can be given protection. The penalty tariff of 25 percent will be removed within two days of the joint statement. Tariffs in key sectors including textiles will be immediately reduced to 18 percent.
India-US trade agreement; More information revealed
America has called it an excellent deal beneficial for both the countries. US Trade Representative Ambassador Jameson Grier said that the detailed documentation of the agreement is in the final stages. The White House will issue an executive order. A joint statement between India and America will also come soon. Jameson Grier also said that the 18 percent tariff against India has been imposed to reduce the existing $55 billion trade deficit.
India will completely remove tariffs on American industrial products. India’s tariff on fruits, vegetables, wine and liquor will also become zero. Grier said the US will continue to seek greater access to India’s protected agricultural areas. Many technical barriers in India-US trade will also be removed. A new process will begin to recognize the quality of American products.
S Jaishankar in Washington
Foreign Minister Dr. S. Jaishankar has reached Washington. He met US State Secretary Marco Rubio. Both welcomed the new trade agreement. Under the agreement, the US has agreed to reduce tariffs on some Indian products by up to 18%. This is part of the External Affairs Minister’s three-day US tour. Both the leaders said that they will take steps to further strengthen India-US relations. 50 countries including India will participate in the International Critical Minerals Summit to be held today in Washington. S Jaishankar also held discussions with US Treasury Secretary Scott Besant. The main topic of discussion was India-US trade agreement and economic cooperation.
This visit of the External Affairs Minister is also in the context of the India-US trade agreement announced on Monday after the phone conversation between Prime Minister Narendra Modi and US President Donald Trump. Under the agreement, Washington has agreed to reduce tariffs on Indian products from 25 percent to 18 percent. This will come into effect immediately. After the announcement, Jaishankar welcomed the trade agreement. The External Affairs Minister said that this agreement will increase employment opportunities, accelerate economic growth, promote innovation and strengthen India’s main initiative ‘Make in India’.