Piyush Goyal, India’s minister of commerce and industry, made the announcement that the country had laid the groundwork for an interim trade agreement with the United States.
The Indian export sector, including MSMEs, farmers, and fishermen, stands to gain the most from this pact’s anticipated $30 trillion market opening, which should result in a significant uptick in employment opportunities.
The United States has agreed to eliminate tariffs on certain commodities, including pharmaceuticals and aviation parts, and to lower taxes on others, like textiles, leather, and organic chemicals, on Indian imports by an average of 18%.
Parts of India’s economy that rely on exports will also benefit from exclusions granted by Section 232. This agreement demonstrates India’s dedication to its farmers and rural communities by safeguarding agricultural products.
Assuming the deal is finalised, the framework also establishes a foundation for future tariff removals on different Indian imports.
