New Delhi: The newly announced India United States interim trade framework is expected to open a massive 30 trillion dollar marketplace for Indian exporters, Commerce and Industry Minister Piyush Goyal said on Saturday. The agreement is being viewed as a major opportunity for micro and small enterprises, farmers and the fisheries sector, while also creating large scale employment for women and young people.
According to the minister, the understanding reached between the two countries will significantly improve access for Indian products in the American market. Reciprocal tariffs on Indian goods are set to be reduced to 18 percent, a move that is likely to boost exports across several high potential industries. Sectors such as textiles and apparel, leather and footwear, plastics and rubber goods, organic chemicals, home décor items, artisanal products and selected machinery are expected to gain the most from the new arrangement.
The framework also provides for zero duty on a range of important products. Generic medicines, gems and diamonds, and aircraft components will enjoy tariff free entry, strengthening India export competitiveness and supporting the Make in India initiative. Additional negotiated benefits include exemptions on aircraft parts, tariff rate quotas on automobile components and improved market access for generic pharmaceuticals, all of which are expected to deliver concrete gains to domestic manufacturers.
The minister highlighted that the pact has been designed to balance export promotion with the protection of sensitive domestic sectors. Agricultural and dairy products such as maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, certain vegetables and meat have been kept outside tariff concessions to ensure the security of rural livelihoods and farmers interests.
The government believes that increased trade with the United States will encourage fresh investments, expand production capacities and integrate Indian businesses more deeply into global supply chains. Small and medium enterprises are expected to find new buyers and partnerships, while the rise in demand for Indian goods could generate lakhs of additional jobs across the country.
Officials described the agreement as a milestone in economic cooperation between the two nations. With greater market access and predictable trading conditions, India aims to strengthen its presence in the world largest economy and build a long term, mutually beneficial commercial relationship.
