Wine, Nuts, Soybean Oil May Get Cheaper After India-US Trade Deal
India-US Trade Agreement: Which Products Will Become Cheaper in India: India and the United States have announced a new interim trade framework aimed at strengthening bilateral trade and making several products cheaper for consumers. Under this agreement, import duties on many goods will be reduced, and the framework is expected to be implemented soon. Both countries will also work towards a full bilateral trade agreement (BTA) in the future.
As part of the deal, the United States will reduce tariffs on Indian goods from 50 percent to 18 percent. India, in return, will cut or remove import duties on several American industrial, food, and agricultural products.
What will become cheaper in India?
Many American products are expected to become more affordable in India. These include wine and spirits, soybean oil, tree nuts, dried distillers’ grains (DDGs), red sorghum used for animal feed, and fresh and processed fruits. Lower duties may reduce costs for businesses and lead to lower prices for consumers.
India to buy $500 billion worth of US goods
According to a joint statement, India has shown interest in purchasing US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal worth $500 billion over the next five years. This reflects deeper trade cooperation between the two countries.
Extra 25% tariff removed
US President Donald Trump has also removed the additional 25 percent tariff imposed on Indian products last year. The duty was earlier imposed over India’s purchase of Russian oil. The US said India has taken significant steps and committed to stopping oil imports from Russia.
Benefits for Indian exporters
The tariff cuts will help India’s labour-intensive sectors, including textiles, apparel, leather, footwear, plastics, rubber, chemicals, home furnishings, artisan products, and machinery. These sectors are expected to see higher exports to the US.
Zero tariff for several Indian products
Commerce Minister Piyush Goyal said that many Indian products will enjoy zero tariffs in the US market. These include gems and diamonds, pharmaceutical products, aircraft parts, smartphones, spices, tea, coffee, coconut oil, cashews, and fruits such as mangoes, bananas, pineapples, and mushrooms. Some bakery products are also included.
How the common man will benefit
The agreement is expected to boost exports, create jobs, and strengthen the ‘Make in India’ initiative. Prime Minister Narendra Modi said the deal will open new opportunities for farmers, entrepreneurs, women, and youth. Piyush Goyal added that the agreement will give Indian exporters access to a $30 trillion US market, especially benefiting MSMEs, farmers, and fishermen.
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