India-US trade deal: Commerce Minister Piyush Goyal on Saturday said that the India-US trade agreement will provide a boost to exports, especially given the competitive 18% tariff rate that has been agreed on. Goyal’s statement comes after India and the US issued a joint statement on the trade agreement which is expected to be signed in the coming days.“The 50% reciprocal tariff has been reduced to 18% which is less compared to our neighboring countries, and will provide a lot of help to our exporters. The deal brings new hopes and opportunities in India’s growth story,” Goyal said.
Which Indian exports will face ZERO tariffs in the US?
Piyush Goyal shared a list of items that will face zero duties when exported to the US from India. These include:
- Gems and diamonds
- Pharmaceutical products
- Aircraft parts
- Smartphones will continue to face zero duty
- Spices
- Tea
- Coffee
- Coconut and Coconut oil
- Areca nut
- Brazil nut
- Cashew nut
- Chestnut
- Vegetable wax
- Avaocado
- Banana
- Mango
- Pineapple
- Mushrooms
- Some bakery products
“Tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thereby further enhancing India’s export competitiveness and Make in India. India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors,” Goyal said.
“These also include spices, tea, coffee, coconut oil, cashew nuts, and several fruits and vegetables such as avocado, banana, mango, pineapple, and mushrooms, along with select bakery products,” the Commerce Minister added.Piyush Goyal asserted that India’s sensitive agricultural and dairy products sectors will continue to be shielded. He also clarified that no genetically modified products from the US will be allowed in India as part of the trade deal.“Agricultural products from Indian farmers will be exported to the United States at zero duty. At the same time, no tariff concessions have been granted for agricultural products from US farmers entering the Indian market,” he said.Also Read | 18% tariffs, boost to exports, agriculture protected: How India benefits from trade deal with US? ExplainedUS President Donald Trump and Prime Minister Narendra Modi had announced the trade deal earlier this week.India has also signalled intent to buy $500 billion worth of US energy, aircraft and aircraft parts, precious metals, technology products, and coking coal over five years.
