New Delhi | Union Commerce and Industry Minister Piyush Goyal announced that India will not impose any import duty on goods worth 44 billion dollars exported from the United States to India. Speaking at a press conference on Saturday, he said the decision is part of the proposed bilateral trade understanding between the two countries.
Goyal explained that around 30 billion dollars worth of Indian goods exported to the United States will continue to face an average tariff of 18 percent, which includes labour-intensive products. However, nearly 12 billion dollars worth of Indian exports, including some agricultural items, will see no change in the existing duty structure.
He further stated that commodities such as steel, aluminium, copper and automobile components are currently subject to uniform tariffs across countries. The United States imposes up to 50 percent duty on these items, but this was introduced as an interim measure. India expects these rates to be reviewed and adjusted in the first phase of the upcoming bilateral trade agreement.
The minister highlighted that the government aims to ensure balanced trade growth while protecting domestic industries. He added that the proposed trade framework will help improve market access and strengthen economic ties between the two nations.
No Import Duty on These Products
According to the minister, agricultural products including meat, poultry, dairy products, apples, tree nuts, soya meal, oilseeds, grains, maize, barley, fruits such as bananas and berries, dry fruits, pulses, chickpeas, lentils, pet food, honey and malt will not attract import duty.
India–US Trade Measures to Protect Domestic Industry
Goyal clarified that India remains firm on safeguarding its farmers and micro, small and medium enterprises. He said India will continue to raise concerns at international forums against unfair trade practices and dumping. The country’s approach is to strengthen its manufacturing base while maintaining fair competition.
Boeing and Airbus Orders to Increase
The commerce minister noted that India is likely to increase aircraft purchases from Boeing and Airbus in the future. He said several Indian airlines have already held discussions with the top management of both companies regarding fleet expansion and long-term supply arrangements.
Quota-Based Duty Relief on Apples
Under the proposed trade arrangement, India will provide quota-based duty concessions on apples imported from the United States. Imports beyond the quota limit will attract a 25 percent duty. The quota will be capped at 80,000 metric tonnes annually.
On Tariff Parity
Responding to a query, Goyal said that zero-duty access under the agreement would improve India’s competitiveness in the US market. He pointed out that while the per capita income in the United States is around 90,000 dollars, India’s per capita income stands close to 3,000 dollars, making balanced trade policies essential.
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