India is preparing to implement the initial phase of its Bilateral Trade Agreement (BTA) with the United States, aiming to lower tariffs on domestic exports to 18%. Commerce and Industry Minister Piyush Goyal revealed that a joint India–US statement is expected to be issued in the coming days, with the reduced US tariff set to take effect upon the release of an executive order.
Goyal mentioned that a more extensive agreement is scheduled for signing by mid-March. India has already engaged in eight trade pacts, with the forthcoming BTA with the US becoming the ninth. These agreements, initiated under PM Narendra Modi, are instrumental in India’s modernization efforts, according to the minister.
Furthermore, India is finalizing the terms of reference for a free trade agreement with the Gulf Cooperation Council (GCC), marking a revival of talks spanning nearly two decades. The potential comprehensive FTA with all six GCC nations is anticipated to enhance policy predictability, attract investments, and bolster food and energy security, particularly benefiting sectors like food processing, infrastructure, petrochemicals, and Information and Communications Technology.
Goyal emphasized that the India-GCC FTA, with current bilateral trade amounting to $179 billion, will serve as a significant catalyst for global welfare. In a separate announcement, Goyal assured the Lok Sabha that India’s agricultural and dairy sectors have been safeguarded in the India-US trade deal, with these products excluded from the agreement to protect the interests of Indian farmers.
The minister highlighted that the trade pact will open up new avenues for MSMEs, skilled labor, and industries, fostering stronger bilateral relations and ensuring energy security, a crucial aspect for India’s vast population. He also expressed that the deal will facilitate access to advanced technologies, aligning with India’s initiatives like ‘Make in India for the World,’ ‘Design in India for the World,’ and ‘Innovate in India for the World.’
