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US-India Trade Deal: $500B Boost & Lower Tariffs
15 Feb
Summary
- India to buy over $500 billion in US goods over five years.
- US and India agree on zero tariffs for key sectors like pharma.
- India's exports to the US are projected to exceed $100 billion soon.
India and the United States have established an interim trade agreement, forging a new framework for reciprocal alignment and cooperation. This significant bilateral milestone is designed to improve market access and reduce tariffs, benefiting both nations amidst shifting global supply chains.
Under the terms of the agreement, India plans to procure more than $500 billion worth of U.S. goods over the next five years. This includes substantial purchases in energy, technology, and agricultural sectors, positioning the U.S. as a key energy supplier.
Simultaneously, India anticipates gaining enhanced competitiveness due to reduced tariff rates on pharmaceuticals, gems, agriculture, and industrial products. Forecasts suggest India's exports to the U.S. will soon exceed $100 billion as a result of this accord.
