New Delhi | India and the United States have reached a broad consensus to strengthen bilateral trade, paving the way for higher exports of generic medicines, agricultural products, aviation-related goods and industrial items. The understanding comes as both countries move closer to concluding an interim trade agreement aimed at easing market access and reducing tariff barriers.
Under the proposed arrangement, the United States is expected to reduce import duties on several Indian products. Tariffs on select categories are likely to be lowered from the existing levels of around 50 percent to nearly 18 percent, significantly improving the competitiveness of Indian goods in the American market. In return, India will rationalise duties on a range of US industrial and agricultural imports in line with global trade practices.
The agreement is projected to open an export opportunity worth nearly 30 billion dollars for India. Sectors such as generic pharmaceuticals, medical supplies, ready-made garments, leather goods, footwear, machinery, handicrafts, plastics and rubber products are expected to benefit directly. Agricultural and food items including tea, coffee, spices, fruits, soyabean oil, animal feed, dairy inputs and processed food products are also likely to gain from improved access and lower duties.
Government sources indicated that care has been taken to ensure that the interests of Indian farmers and the domestic agriculture sector are protected. No provision in the understanding is expected to adversely impact dairy or core farming activities. The focus remains on expanding exports while maintaining food security and supporting rural livelihoods.
Prime Minister Narendra Modi said the framework would deepen investment and technology partnerships between the two countries and create new opportunities for farmers, workers and entrepreneurs. He added that the initiative aligns with the Make in India vision and would contribute to job creation and long-term economic growth.
Uttar Pradesh Chief Minister Yogi Adityanath described the development as a major achievement under India’s current leadership, stating that it would enhance India’s global standing as a reliable manufacturing and export hub while safeguarding national interests.
Discussion about this post