- India secures zero-duty access to US markets for agriculture, pharma, and high-value goods
- The interim trade deal protects Indian farmers, MSMEs, handloom, and handicraft sectors
- Zero tariffs apply to products like tea, spices, fruits, pharmaceuticals, gems, and jewellery
India has achieved zero-duty access for a wide range of exports to the United States under the newly announced interim trade agreement. This would benefit sectors such as agriculture, pharmaceuticals and high-value manufactured goods.
Union Commerce Minister Piyush Goyal shares the details at a press conference in New Delhi on Feb. 7. He said that the agreement is structured to ensure that domestic farmers and small businesses are not adversely affected while allowing Indian products to gain easier entry into the US market.
Impact On Agriculture, Pharma, High-Value Goods
“In agriculture, many products from India will now be exported to the United States at zero duty,” Goyal said, adding, “I can say with full confidence that this India-US agreement does not harm the interests of India's farmers, MSMEs or the handloom and handicraft sectors in any way.”
The agreement goes beyond agriculture, extending duty-free access to India's pharmaceutical exports, valued at around $13 billion. Gems and jewellery will also benefit from zero tariffs.
Looking ahead, Goyal stated that smartphones exported from India are expected to attract zero duty in the future, alongside several other products that will see reciprocal tariffs reduced to zero.
“No reciprocal tariffs will be levied on these products. Duties will now be zero in the US,” Goyal said.
Items With 0% Tariff
- Agricultural products: Tea, spices, coffee, coconut oil, copra, vegetable wax.
- Fruits and vegetables: Banana, mango, guava, avocado, kiwi, papaya, pineapple, mushrooms, vegetable roots.
- Cereals and seeds: Barley, sesame seeds, poppy seeds.
- Processed foods and beverages: Bakery products, cocoa products, citrus juices.
- Pharmaceuticals: Generic drugs and other medicines.
- High-value manufactured goods: Gems and jewellery, gems and diamonds from Bengal, Kerala and Maharashtra, coins, platinum, clocks and watches, smartphones (in the future), essential oils, select home decor items such as chandeliers, aircraft and machinery parts, seeds, inorganic chemicals and compounds.
Boosting India's Export Potential
The interim trade deal marks a significant step in strengthening India's trade relations with the United States. By providing zero-duty access for multiple sectors, the agreement aims to improve export opportunities, support farmers and promote high-value manufacturing while maintaining a focus on domestic interests.
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