New Delhi, February 8 (IANS). Regarding the trade agreement between India and America, the industry estimates that the framework of the interim trade deal will strengthen India’s ambitious target of taking exports beyond $ 120 billion in the financial year 2025-26.
According to the Engineering Export Promotion Council of India (EEPC), the reduction in tariffs will help India achieve its target of engineering exports of $250 billion by 2030. “The US is the largest market for engineering goods. EEPC welcomes the release of the Framework for an Interim Agreement between the two countries. This Framework reduces duties and trade barriers,” the council said in a statement.
It further said that the proposed agreement will promote local manufacturing and provide greater market access to Indian exporters, including in the engineering space, in the world’s largest economy.
It has been made very clear in the agreement between the two countries that the 25 percent tariff imposed by President Donald Trump on India has been reduced to 18 percent. Apart from this, the charges imposed for purchasing oil from Russia have also been removed. India will also get a preferential tariff rate quota for automotive parts.
This will help the engineering export sector to regain its competitiveness in the US market. EEPC said that MSME engineering exporters are expected to benefit significantly from the trade deal with the US. EEPC India expects that going forward, the duties imposed by the US on steel, aluminium, auto and auto components under Section 232 will also be reduced.
“A deeper trade partnership with the US is good for both sides. Once the interim deal is signed and a larger agreement is in place, the export growth in the Indian engineering sector can significantly increase. This will significantly contribute to achieving the engineering export target of $250 billion by 2030,” it said.
Additionally, the US-India joint statement has boosted confidence in the Indian engineering sector. This trade agreement will not only help engineering exporters win back many old buyers but will also get new customers, thereby boosting export growth in the coming months.
–IANS
KK/AS