India and the US have released a framework for an interim trade agreement, giving fresh momentum to finalizing a bilateral trade agreement between the two countries. Commerce and Industry Minister Piyush Goyal posted on social media platform X that the US and India will soon implement this framework.
‘Farmers’ interests are completely safe’
The fear that existed regarding India’s agricultural and dairy products has now completely ended. Modi government has made it clear that there will be no compromise with the interests of Indian farmers. Union Minister Piyush Goyal said that sensitive agricultural and dairy products like maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, some vegetables and meat have been completely protected. He said this agreement will help India and the US move forward with their shared commitment to deepen economic cooperation, which is so important for our citizens and businesses.
Tariff reduced on textile and machinery parts
According to Reuters, India will reconsider tariffs on US industrial and agricultural products. Tariffs will either be eliminated or reduced, especially on nuts, fruits, soybean oil, alcoholic beverages, and other food products. The US will also impose a reciprocating tariff of 18 percent on Indian goods such as textiles, apparel and machinery instead of 25 percent.
$30 trillion market for farmers and fishermen
Piyush Goyal said this trade deal will open doors to a huge market worth $30 trillion for small traders as well as farmers and fishermen. Increased exports will create millions of new jobs for women and youth. Reducing reciprocal tariffs on Indian goods to 18 per cent will provide greater access to Indian products from key sectors such as textiles, leather, footwear, plastic and rubber products, organic chemicals, home décor, handicrafts and select machinery in the world’s largest economy.