India-US Trade Agreement Eliminates Tariffs on Key Exports

In a significant development for international trade, Union Minister for Commerce and Industry, Piyush Goyal, announced on Saturday the removal of tariffs on several Indian exports to the United States. This comes as the countries revealed a new framework for the Bilateral Trade Agreement.

During a press briefing, Goyal confirmed that exports such as gems, diamonds, pharmaceuticals, and smartphones from India will now attract zero duties when entering the US market. This move is expected to boost trade in goods that are exported in large quantities, including agricultural items like spices, tea, and coffee.

The United States will, however, continue to impose an 18 percent reciprocal tariff on certain Indian-origin goods, including textiles and machinery. These tariffs may be rescinded upon the agreement's successful conclusion, signaling a potential relief for sectors that have faced high tariffs, notably highlighted by Kirit Bhansali of the GJEPC.