US President Donald Trump and Prime Minister Narendra Modi
Commerce and Industry Minister Piyush Goyal on Saturday said the India-US trade deal will open up a US$30 trillion market for Indian exporters, especially small and medium enterprises (MSMEs), farmers and fishermen. He said that the increase in exports will create lakhs of new employment opportunities for the women and youth of the country. Goyal said in a post on social media that under the decisive leadership of Prime Minister Narendra Modi, India has prepared the framework for an interim agreement with America. This will open up a market worth US$ 30 trillion for Indian exporters, especially MSMEs, farmers and fishermen.
America and India on Saturday announced agreement on the outline of an interim trade agreement. Under this, America will reduce the duty on India to 18 percent. India-US joint statement According to the statement, this framework reflects the commitment of both countries towards the negotiations for a comprehensive US-India bilateral trade agreement initiated by President Donald J Trump and Prime Minister Narendra Modi on February 13, 2025. This framework will include additional market access commitments and will support more robust supply chains.
The deal will prove to be a milestone
The statement said that the interim agreement between America and India will prove to be a milestone in the partnership between our countries. It reflects a shared commitment to bilateral and balanced trade based on mutual interests and concrete results. Among the key terms of the agreement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products. These include dry grains, red sorghum for animal feed, nuts, fresh and processed fruits, soybean oil, wine and spirits and other products.
18 percent tariff will be charged on these products
At the same time, America will impose a duty of 18 percent on goods produced in India. These goods include textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home furnishing goods, handicraft products and some machinery. The statement said that the US and India will immediately implement this framework and will work towards finalizing the interim agreement to complete a mutually beneficial bilateral trade agreement in line with the agreed framework.
Make in India will get a boost
Additionally, the Minister said that duty (or import duty) on a wide range of goods including generic pharmaceuticals, gems and diamonds and aircraft parts will be reduced to zero, further boosting India’s export competitiveness and the ‘Make in India’ campaign. Goyal said India will also get benefits under the agreement through negotiations on exemptions on aircraft parts, tariff rate quotas on auto parts and generic pharmaceuticals, which will lead to a solid growth in exports in these sectors. Also, he said that this agreement reflects India’s commitment to protect the interests of farmers and sustain rural livelihoods, including fully protecting sensitive agricultural and dairy products including maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat.