Trade deal with US opens $30T market for Indian exports
What's the story
India and the United States have signed a framework for an interim agreement on reciprocal and mutually beneficial trade. The deal, announced by Union Commerce Minister Piyush Goyal, will open a massive $30 trillion market for Indian exporters. Goyal said this development will particularly benefit Indian MSMEs (Micro, Small and Medium Enterprises), farmers, and fishermen while also safeguarding their interests.
Tariff reduction
Reciprocal tariffs on Indian goods to be reduced
Goyal explained that as part of the interim deal with the US, reciprocal tariffs on Indian goods will be reduced to 18%. He said this move will offer a huge market opportunity in key sectors like textiles and apparel, leather and footwear, plastic and rubber goods, organic chemicals, home decor, and artisanal products among others.
Tariff elimination
Tariffs to be eliminated on wide range of products
Goyal further said that tariffs will be eliminated on a wide range of Indian goods. This includes generic pharmaceuticals, gems and diamonds, and aircraft parts. He said this move will further enhance India's export competitiveness and boost the Make in India campaign. The minister announced that India will get exemptions under Section 232 on aircraft parts, tariff rate quota on auto parts, and negotiated outcomes on generic pharmaceuticals.
Protection measures
Farmers' interests protected under the deal
The interim agreement also seeks to protect farmers' interests and sustain rural livelihoods. Goyal said it completely shields sensitive agricultural and dairy products such as maize, wheat, soya, rice, poultry, milk, cheese, ethanol fuel, tobacco, certain vegetables, meat among others. He added that this deal will help India and the US focus on deepening economic cooperation for sustainable growth for their people businesses.