$30 trillion market opens, 18% tariff from today... 10 big points of the India-US deal

The trade deal between India and the US is likely to be signed next week. However, before that, both countries have released the framework of an interim trade agreement (India-US Trade Agreement). Under this, an 18 percent tariff will be imposed on India from today. The extra 25% tariff imposed due to buying oil from Russia has also been removed.

This framework between India and the US can be implemented soon and talks will proceed towards a comprehensive bilateral trade agreement (BTA) between the two countries. This framework will advance the India-US bilateral trade agreement (BTA) talks starting on February 13.

Piyush Goyal informed that under these talks, market access will gradually increase, supply chains will be strengthened, and provisions like trade barriers can be eliminated. Also, India and the US can reduce tariffs on all industrial goods. The Commerce Minister said that this trade deal will open a $30 trillion market for India.

10 big points of the trade deal

1. The US has reduced the 50 percent tariff on India to 18 percent, effective from today.

2. After the reduction in tariffs, the US will open a $30 trillion market for India.

3. This will provide a great opportunity for businesses in sectors such as textiles, leather and footwear, plastic and rubber products, organic chemicals, home decor, handicrafts, and select machinery. 4. India has agreed to purchase $500 billion worth of goods over the next five years, including oil, aircraft, fighter jets, energy, and certain food products.

5. India will eliminate or reduce tariffs on a wide range of US industrial goods and agricultural products.

6. This includes dried grains, red sorghum for animal feed, nuts, fresh and processed fruits, soybean oil, wine, and spirits.

7. The US, in turn, will eliminate tariffs on select products from India, such as generic pharmaceuticals, gems and diamonds, and aircraft parts.

8.This deal will significantly benefit micro, small, and medium enterprises (MSMEs), farmers, and fishermen. It will also create new employment opportunities for women and youth.

9.India has not offered any tariff concessions on key products such as corn, wheat, rice, soy, poultry, meat, milk, cheese (dairy), ethanol (fuel), tobacco, and certain vegetables.

10. India will purchase $500 billion worth of US energy, aircraft, precious metals, technology products, and coking coal over the next five years. It will also promote trade in GPUs and data center products.