The trade deal between India and America is likely to be signed next week. However, before this, both the countries have issued the framework of an interim trade agreement (India-US Trade Agreement). Under this agreement, 18 percent tariff will be imposed on India from today. The additional 25% tariff imposed on purchasing oil from Russia has also been removed. This framework can be implemented soon between India and the US and will pave the way for a comprehensive bilateral trade agreement (BTA) between the two countries. This framework will take forward the negotiations for an India-US bilateral trade agreement (BTA), which is scheduled to begin on February 13.
Piyush Goyal said that under these negotiations, market access will gradually increase, supply chains will be strengthened, and provisions like trade barriers can be eliminated. Additionally, India and the US can reduce tariffs on all industrial goods. The Commerce Minister said that this trade deal will open a $30 trillion market for India.
10 key points of the trade deal:
America has reduced the tariff on India from 50 percent to 18 percent, which is effective from today.
After tariff reduction, America will open up a $30 trillion market to India.
This will provide significant opportunities for businesses in sectors such as textiles, leather and footwear, plastic and rubber products, organic chemicals, home décor, handicrafts and select machinery.
India has agreed to buy $500 billion worth of goods over the next five years, including oil, aircraft, fighter jets, energy and some food products.
India will eliminate or reduce tariffs on a wide range of US industrial goods and agricultural products.
This includes dry grains, red sorghum for animal feed, nuts, fresh and processed fruits, soybean oil, wine and spirits. Meanwhile, the US will eliminate tariffs on select Indian products, such as generic pharmaceuticals, gems and diamonds, and aircraft parts.
This deal will especially benefit micro, small and medium enterprises (MSMEs), farmers and fishermen. Women and youth will also get new employment opportunities.
India has not given any tariff concessions on major products like maize, wheat, rice, soybean, poultry, meat, milk, cheese (dairy), ethanol (fuel), tobacco and some vegetables. India will buy energy, aircraft, precious metals, technology products and coking coal worth $500 billion from America in the next five years. It will also boost trade in GPU and data center products.