New Delhi, February 9: The India-U.S. bilateral trade agreement marks a significant milestone for global commerce, providing Indian exporters preferential access to the $30 trillion U.S. market. This information was released in an official statement by the government on Monday.
The government highlighted that the agreement is extensive, ensuring zero-duty exports for a wide range of goods. It is expected to enhance cooperation in the digital and technology sectors between the two nations. Additionally, the deal guarantees protections for farmers, MSMEs, and domestic industries.
In 2024, India’s exports to the U.S. reached $86.35 billion. This agreement will benefit labor-intensive sectors such as textiles, leather, games and jewelry, as well as the pharmaceutical and technology industries.
Under the terms of the deal, the U.S. has reduced tariffs on Indian exports valued at $30.94 billion from 50% to 18%. Additionally, tariffs on Indian exports worth $10.03 billion have been eliminated entirely.
Furthermore, the statement noted that the reduction of tariffs on textiles and apparel exports from 50% to 18% will grant exporters access to the $113 billion U.S. market. Similarly, a decrease in tariffs on machinery exports to 18% will open up significant opportunities in the $477 billion U.S. market.
The U.S. footwear market, valued at $42 billion, will also present substantial opportunities for Indian exporters due to the reduced tariffs.
The government statement clarified that India has fully safeguarded sectors such as dairy, meat, poultry, and grains in the trade deal with the U.S.
This agreement is expected to significantly enhance India’s competitive edge in the U.S. market, especially as the U.S. has imposed tariffs of 37% on China, 20% on Vietnam and Bangladesh, and 19% on Malaysia, Indonesia, the Philippines, Cambodia, and Thailand.
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