Indian Economy News

India Achieves Landmark Trade Victory, Unlocks US$ 30 Trillion US Market for Exports Across Key Sectors

The signing of an interim trade agreement marks a milestone for bilateral trade relations, consequently establishing preferential access to US$ 30 trillion (Rs. 2,72,22,000 crore) of the Indian exporter community. Additionally, the Union Minister of Commerce and Industry Mr. Piyush Goyal announced its intent to establish a tariff-reducing trade agreement with the United States by announcing the reduction of the current maximum of 50% (with punitive amounts) to a standard rate of 18% (reciprocally) and the reduction of existing tariffs from those applicable to other nations with whom it has transacted business. This represents a significant reduction in tariffs and returns the competitiveness of the Indian product globally, with an average tariff rate less than that of competing countries such as China (35%) and Vietnam (20%), as well as Bangladesh (20%). In addition, India's Prime Minister, Mr. Narendra Modi, stated that the agreement demonstrates the strength, trust, and growing depth of their respective partnerships and hopes that it will create a more resilient economic growth path for both people and businesses while reinforcing the commitment to "Make in India". 
Prime Minister Mr. Narendra Modi termed the framework a positive development that will expand the opportunities for Indian farmers, entrepreneurs, Micro, Small, and Medium Enterprises (MSMEs), and exporters by opening new markets and spurring innovation, jobs, and investment. India intends to purchase roughly US$ 500 billion (Rs. 45,37,000 crore) worth of US goods-energy products, aircraft, technology, and metals over the next five years as part of a more comprehensive trade-and-investment initiative. Meanwhile, the protection of sensitive agricultural products is retained to take into consideration the various domestic misgivings and reassure different stakeholders that their interests are being taken care of. In sum, this interim framework will pave the way for deeper economic integration, stronger supply chains, and closer bilateral strategic ties.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.