New Delhi, February 9: The India-U.S. bilateral trade agreement marks a significant achievement for global trade, providing Indian exporters preferential access to the $30 trillion U.S. market. This information was revealed in an official statement released by the government on Monday.
The government highlighted that this agreement is extensive, ensuring zero-duty exports for a wide range of goods. It is expected to enhance cooperation in the digital and technology sectors between the two nations. Additionally, it guarantees protections for farmers, MSMEs, and domestic industries.
In 2024, India’s exports to the U.S. reached $86.35 billion. This agreement is poised to benefit labor-intensive sectors such as textiles, leather, games and jewelry, as well as the pharmaceutical and technology industries.
Under this agreement, the U.S. has reduced tariffs on $30.94 billion worth of Indian exports from 50% to 18%. Furthermore, tariffs on $10.03 billion worth of Indian exports have been eliminated entirely.
Moreover, the statement indicated that the reduction of tariffs on textiles and apparel exports from 50% to 18% will provide exporters access to the $113 billion U.S. market. Similarly, the decrease in tariffs on machinery exports to 18% will open up significant opportunities in the $477 billion U.S. market.
The U.S. footwear market, valued at $42 billion, will also present substantial opportunities for Indian exporters due to the reduced tariffs.
The government statement confirmed that India has fully safeguarded sectors such as dairy, meat, poultry, and grains in the trade deal with the U.S.
This agreement is expected to significantly enhance India’s competitive capacity in the U.S. market, especially as the U.S. has imposed tariffs of 37% on China, 20% on Vietnam and Bangladesh, and 19% on Malaysia, Indonesia, the Philippines, Cambodia, and Thailand.
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