The new trade agreement between India and America has brought great relief to Indian exporters. Union Commerce Minister Piyush Goyal has informed that now there will be no tax on many goods going from India to America. Zero duty will be applicable on these goods, which will make it easier and cheaper for Indian traders to sell goods in the US market. This decision has been taken under the recently signed interim trade agreement.
On which items will there be zero duty exemption?
According to the information released by the government, goods from many different sectors have been included in this list. Apart from gems and jewellery, agricultural products will also not be taxed. In the list given below, you can know about those goods on which import duty will no longer have to be paid in America.
James and Diamond: Businessmen of Gujarat and Maharashtra will get huge benefit from this.
Medicines: Generic medicines, antibiotics and vaccines going from India will now be duty free.
smart fone: Zero duty will continue on phones exported in large numbers from India.
Farming Products: Tea, coffee, spices, coconut, cashew nuts, betel nuts and fresh fruits and vegetables.
Other accessories: Silk products, aircraft parts and some machinery parts.
What are the other special features of the agreement
In this agreement, not only zero duty but also reduction in old tax has been agreed. America has reduced the tax on Indian goods to 18%, which was earlier effective at 50%. Along with this, President Donald Trump has also removed the 25% penalty tax imposed on Indian goods. In return, India will also reduce duty on industrial goods coming from America. However, Minister Piyush Goyal has clarified that sensitive sectors like dairy, sugar and coarse grains have been kept out of this agreement so that Indian farmers are not affected.