Tariffs to fall, markets to open, lakhs of jobs: Piyush Goyal on India-US trade deal
The agreement will see the US cut reciprocal tariffs on Indian goods to 18 per cent and eliminate duties on products such as generic pharmaceuticals, gems and diamonds, and aircraft parts, boosting export opportunities across key sectors.
As India and the United States on Saturday unveiled an interim trade pact, marking a significant milestone after months of negotiations, the Union Minister of Commerce and Industries said the agreement would open up a USD 30 trillion market for Indian exporters, and would create lakhs of new job opportunities for women and youth across the country.
In a joint statement, India and the US announced on Saturday that they have reached a framework for an interim trade agreement under which tariffs on New Delhi will be reduced to 18 per cent. Piyush Goyal was closely involved in the trade negotiations, both in New Delhi and in Washington.
"Under the decisive leadership of PM Narendra Modi ji, India has reached a framework for an Interim Agreement with the US. This will open a USD 30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen," Goyal said in a social media post.
Explaining the key features of the agreement, he said the US will reduce reciprocal tariffs on Indian goods to 18 per cent, opening up significant market opportunities in sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods, and select machinery in the world’s largest economy.
Additionally, the minister said import duties will be brought down to zero on a wide range of products, including generic pharmaceuticals, gems and diamonds, and aircraft parts, further boosting India’s export competitiveness and strengthening the Make in India initiative.
"The agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain vegetables, meat, etc," he added.
KEY ASPECTS OF INDIA-US TRADE DEAL
- Under the deal, the United States will reduce tariffs on Indian goods from 50 per cent to 18 per cent.
- The agreement is expected to open up a USD 30 trillion market for Indian exporters, particularly MSMEs, farmers and fishermen. The resulting boost in exports could generate lakhs of new jobs for women and youth.
- The US will slash reciprocal tariffs on Indian goods to 18 per cent, creating significant market opportunities in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and select machinery.
- Tariffs will be reduced to zero on a wide range of products, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
- India will receive exemptions under Section 232 for aircraft parts, secure a tariff rate quota for auto parts, and obtain negotiated outcomes for generic pharmaceuticals.
- The deal allows India to fully protect sensitive agriculture and dairy sectors, including maize, wheat, rice, soybeans, poultry, milk, cheese, fuel ethanol, tobacco, certain vegetables and meat products.
- In return, India will eliminate or reduce tariffs on all US industrial goods and a broad range of American food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, spirits and other products.
- India also agrees to address long-standing barriers to US medical devices, eliminate restrictive import licencing procedures, and remove quantitative restrictions affecting US information and communication technology goods.
- India intends to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years. It will also significantly expand trade in technology products, including graphics processing units and other goods used in data centres, while deepening joint technology cooperation.
- Both countries have committed to providing each other with sustained preferential market access in sectors of mutual interest and to establishing rules of origin to ensure that the benefits of the agreement primarily accrue to India and the US.
- The US and India will also work to address non-tariff barriers affecting bilateral trade.
The final agreement is likely to be sealed by mid-March.
As India and the United States on Saturday unveiled an interim trade pact, marking a significant milestone after months of negotiations, the Union Minister of Commerce and Industries said the agreement would open up a USD 30 trillion market for Indian exporters, and would create lakhs of new job opportunities for women and youth across the country.
In a joint statement, India and the US announced on Saturday that they have reached a framework for an interim trade agreement under which tariffs on New Delhi will be reduced to 18 per cent. Piyush Goyal was closely involved in the trade negotiations, both in New Delhi and in Washington.
"Under the decisive leadership of PM Narendra Modi ji, India has reached a framework for an Interim Agreement with the US. This will open a USD 30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen," Goyal said in a social media post.
Explaining the key features of the agreement, he said the US will reduce reciprocal tariffs on Indian goods to 18 per cent, opening up significant market opportunities in sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods, and select machinery in the world’s largest economy.
Additionally, the minister said import duties will be brought down to zero on a wide range of products, including generic pharmaceuticals, gems and diamonds, and aircraft parts, further boosting India’s export competitiveness and strengthening the Make in India initiative.
"The agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain vegetables, meat, etc," he added.
KEY ASPECTS OF INDIA-US TRADE DEAL
- Under the deal, the United States will reduce tariffs on Indian goods from 50 per cent to 18 per cent.
- The agreement is expected to open up a USD 30 trillion market for Indian exporters, particularly MSMEs, farmers and fishermen. The resulting boost in exports could generate lakhs of new jobs for women and youth.
- The US will slash reciprocal tariffs on Indian goods to 18 per cent, creating significant market opportunities in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and select machinery.
- Tariffs will be reduced to zero on a wide range of products, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
- India will receive exemptions under Section 232 for aircraft parts, secure a tariff rate quota for auto parts, and obtain negotiated outcomes for generic pharmaceuticals.
- The deal allows India to fully protect sensitive agriculture and dairy sectors, including maize, wheat, rice, soybeans, poultry, milk, cheese, fuel ethanol, tobacco, certain vegetables and meat products.
- In return, India will eliminate or reduce tariffs on all US industrial goods and a broad range of American food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, spirits and other products.
- India also agrees to address long-standing barriers to US medical devices, eliminate restrictive import licencing procedures, and remove quantitative restrictions affecting US information and communication technology goods.
- India intends to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years. It will also significantly expand trade in technology products, including graphics processing units and other goods used in data centres, while deepening joint technology cooperation.
- Both countries have committed to providing each other with sustained preferential market access in sectors of mutual interest and to establishing rules of origin to ensure that the benefits of the agreement primarily accrue to India and the US.
- The US and India will also work to address non-tariff barriers affecting bilateral trade.
The final agreement is likely to be sealed by mid-March.