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India-US Trade Deal Nears Finish Line
26 Oct
Summary
- India and US finalize most discussions for a bilateral trade agreement.
- Tariffs on Indian goods to US reduced to 18% from 50%.
- India commits to buying $500 billion in US energy and tech products.
India and the United States have concluded the majority of discussions for a bilateral trade agreement and are now refining its terms. This progress was announced by Commerce Minister Piyush Goyal, who is currently leading a delegation to Europe. The framework for this agreement was established earlier this year, leading to significant tariff adjustments.
The interim agreement includes a substantial reduction in US tariffs on Indian goods, lowering them from 50% to 18%. Further reductions are anticipated for pharmaceuticals, gems, diamonds, and aircraft parts, aiming for zero tariffs. In reciprocal measures, India will decrease tariffs on a wide range of US industrial and agricultural products, with assurances that Indian farmers' interests are protected.
India has also signaled its intent to purchase $500 billion worth of US energy products, aircraft, technology, and other goods over the next five years. Both nations have committed to enhancing trade in technology products and addressing non-tariff barriers, including those related to medical devices and digital trade. The final legal agreement was anticipated by mid-March, with ongoing talks addressing any changes in tariff landscapes.
