Commerce and Industry Minister Piyush Goyal stated that the trade agreement between India and the US will enhance economic cooperation, focusing on sustainable growth for both nations. This agreement is expected to provide Indian exporters, particularly MSMEs, farmers, and fishermen, access to a $30 trillion market, leading to the creation of numerous job opportunities.
Under the framework of the agreement, the US will reduce reciprocal tariffs on Indian goods to 18%, presenting significant market potential in sectors like textiles, apparel, leather products, chemicals, home decor, and machinery. Minister Goyal highlighted that several goods, including pharmaceuticals, gems, diamonds, and aircraft parts, will have tariffs reduced to zero, boosting India’s export competitiveness and supporting the ‘Make in India’ initiative.
Moreover, India stands to benefit from exemptions on aircraft parts, tariff rate quotas on auto parts, and favorable outcomes on generic pharmaceuticals, which are expected to drive export growth in these specific sectors. The agreement underscores India’s commitment to safeguarding the interests of farmers by protecting sensitive agricultural and dairy products, ensuring the sustainability of rural livelihoods.
The agreement also paves the way for the removal of tariffs on various Indian goods, subject to the successful conclusion of the Interim Agreement. Sectors such as generic pharmaceuticals, gems, diamonds, and aircraft parts, where India holds a strong global market share, are poised to benefit from this development. Additionally, Washington will eliminate tariffs on specific Indian aircraft and aircraft parts previously subjected to national security proclamations related to metal imports.
