India’s Finance Minister, Nirmala Sitharaman, stated that India has protected its agriculture and animal husbandry sectors in the interim US trade deal. Under this agreement, the US will reduce tariffs on Indian goods to 18%, opening up market opportunities in various sectors like textiles, apparel, leather products, and more. The deal focuses on safeguarding key farm and dairy products, spices, and staples to enhance farmer incomes.
The trade agreement emphasizes India’s commitment to supporting farmers and rural livelihoods by safeguarding sensitive agricultural and dairy products, including maize, wheat, rice, poultry, milk, and more. Both the United States and India will grant each other preferential market access in sectors of mutual interest on a continuous basis. Additionally, rules of origin will be established to ensure that the benefits of the agreement primarily benefit both countries.
The US and India will collaborate to address non-tariff barriers affecting bilateral trade, with India agreeing to tackle long-standing barriers hindering the trade of US food and agricultural products. Efforts will be made to expand market access opportunities through negotiations, affirming the intention to lower tariffs on Indian goods. India is set to receive exemptions on aircraft and auto parts, along with favorable outcomes for generic pharmaceuticals, boosting export prospects in these sectors.
