New Delhi: Commerce and Industry Minister Piyush Goyal said on Friday that the interim trade deal between India and the United States is likely to become operational in April this year.
Meanwhile, a three-day meeting between Indian and US officials to finalise the legal text for the interim trade agreement will begin in the US on February 23.
The minister also said that India’s free trade agreements (FTAs) with the UK and Oman are likely to be implemented in April, while in the case of New Zealand, the trade pact is expected to be implemented in September.
On February 7, the US and India announced in a joint statement that they reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade.
The India-US bilateral trade agreement marks a major milestone in India’s global trade engagement, securing sustained preferential access for Indian exports in the US market valued at over $30 trillion, according to an official statement.
The agreement delivers comprehensive tariff rationalisation, zero-duty access across large product categories, enhanced digital and technology cooperation, and a carefully calibrated framework to safeguard India’s farmers, MSMEs, and domestic industry.
With India’s total exports to the United States standing at $86.35 billion in 2024, the agreement significantly enhances competitive access across key sectors, including textiles, leather, gems and jewellery, agriculture, machinery, home décor, pharmaceuticals, and technology-driven industries.
Under the agreement, tariffs on $30.94 billion worth of these exports have been reduced from 50 per cent to 18 per cent, while tariffs on another $10.03 billion have been reduced from 50 per cent to zero. This means a substantial share of Indian goods entering the US market will now face either sharply lower tariffs or completely duty-free access, significantly improving price competitiveness.
India’s labour-intensive textiles & apparel exports gain tariff cuts from 50 per cent to 18 per cent, with silk securing zero per cent duty access in a $113 billion U.S. market for these goods, while machinery exports see tariffs reduced to 18 per cent, opening opportunities in a $477 billion US market, the statement said.
The agreement also delivers significant gains for India’s leather and footwear sector, positioning the country as the most-preferred supplier to the US market. Given the labour-intensive nature of the leather and footwear industry, enhanced market access is expected to support manufacturing growth and employment generation, particularly across MSMEs and production clusters.
(IANS)
