India is diversifying its import basket for precious metals from the UAE to increase its purchase of gold and silver from the US market, aiming to lower prices and reduce the trade surplus with the US. The United States serves as a significant global hub for trading precious metals, exporting substantial amounts of gold and silver in various forms, including raw, refined, and jewelry, to countries like Canada, India, and the UK.
In addition to precious metals, India exports agricultural products worth $2.8 billion to the US while importing goods worth $1.5 billion, resulting in a $1.3 billion surplus in non-marine agricultural exports. Strict biosecurity measures are in place for imported agri-products, with genetically modified foods prohibited. Certain agri-products imported from the US are also subject to Tariff Rate Quotas (TRQs).
The India-US interim trade agreement is expected to significantly benefit India’s data center industry by providing increased access to advanced technology, investment opportunities, and reduced operational costs. The agreement addresses high import duties on enterprise GPU servers, aiming to make setting up data centers in India more cost-effective compared to locations like Singapore, with an estimated 14% reduction in establishment costs.
The finalization of the interim India–US Bilateral Trade Agreement includes comprehensive tariff rationalization, zero-duty access to various product categories, enhanced digital and technology cooperation, and a framework to protect India’s farmers, MSMEs, and domestic industries. With India’s total exports to the United States reaching $86.35 billion in 2024, the agreement significantly improves competitive access across key sectors such as textiles, leather, gems and jewelry, agriculture, machinery, home décor, pharmaceuticals, and technology-driven industries.
