What are the key outcomes of the India-US interim trade agreement?

The agreement significantly reduces US tariffs on Indian goods to 18% and lowers India's import duties on US industrial and agricultural products, aiming to boost bilateral trade and economic cooperation.

How does the India-US trade pact benefit the pharmaceutical sector?

The pact strengthens the India-U.S. medicines partnership, with generics being exempt from tariffs, which is seen as an important aspect of national security.

What is the expected impact of the India-US trade deal on global supply chains?

The agreement is anticipated to enhance India's position in global supply chains, offering a competitive advantage in the race for opportunities outside of China.

Home / Business and Economy / India-US Trade Pact: Tariffs Slashed, Exports Soar

India-US Trade Pact: Tariffs Slashed, Exports Soar

7 Feb

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Summary

US tariffs on Indian goods will decrease from 50% to 18%.
India will cut duties on US industrial and agricultural products.
The agreement strengthens bilateral economic cooperation and market confidence.

India-US Trade Pact: Tariffs Slashed, Exports Soar

India and the United States have established a framework for an interim trade agreement, a move largely welcomed by industry leaders for its potential to boost exports and market confidence. The agreement stipulates a significant reduction in US import duties on Indian goods, lowering them from 50% to 18%.

In reciprocal measures, India will eliminate or reduce tariffs on a broad range of American industrial, food, and agricultural products. This includes items such as dried distillers' grains, red sorghum, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits.

Industry bodies like the Indian Pharmaceutical Alliance (IPA), FICCI, and the Hinduja Group have expressed optimism. The IPA highlighted the importance of strengthening the India-U.S. medicines partnership for national security, noting that generics are exempt from tariffs. FICCI views the pact as a pivotal step for economic synergy and enhancing India's competitiveness as a global manufacturing hub.