A joint statement is likely to be released next week, following which the US will drop tariffs on India to 18%.
New Delhi/Washington: India is set to roll out the first tranche of its Bilateral Trade Agreement (BTA) with the United States in a matter of days, which will see a reduction in tariffs on domestic exports to 18 per cent, Commerce and Industry Minister Piyush Goyal said on Thursday.
The minister said that a joint India–US statement is likely to be released in the next four to five days. Once an executive order is issued following the statement, the reduced 18 per cent US tariff on Indian goods will come into force. "A more comprehensive and formal agreement is targeted for signing by mid-March," he added.
Goyal further stated that India has already entered into a record eight trade agreements, and the first tranche of the BTA with the US will soon become the ninth. The FTAs signed by India under PM Narendra Modi will help in the thrust to modernize India, he added. "The FTAs signed under PM Modi help us in our thrust to modernise India," said the minister.
The minister said the interests of India’s farmers have been protected in the India-US trade deal, as agricultural and dairy products have been kept outside the ambit of the deal. The minister said that India has successfully protected sensitive sectors such as agriculture and dairy, while giving full attention to food and farming concerns in the India-US trade agreement.
He said the partnership will create new opportunities for MSMEs, skilled workers, and industry, strengthen bilateral ties, and ensure energy security, which remains a top priority for 140 crore Indians.
The minister said that the trade deal “will simplify the reach to advanced technologies and help in realising India's 'Make in India for the World', 'Design in India for the World' and 'Innovate in India for the World'."
On February 2, Trump wrote on his Truth Social platform that he had spoken with Modi – calling him “one of my greatest friends” – about several issues, including ending Russia’s war in Ukraine. “He [Modi] agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump said.
Then, Trump wrote that upon Modi’s request, and out of “friendship and respect” for him, Washington “agreed to a Trade Deal”, whereby the US “will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%”.
White House officials were quoted in US media confirming that the additional 25 percent tariffs levied on Indian goods last year as punishment for buying Russian oil would also be dropped. In total, that would bring 50 per cent tariffs down to 18 per cent.
Agriculture Minister Shivraj Singh Chouhan on Thursday said the India-US trade agreement fully safeguards the country's agricultural interests, particularly those of the farm and dairy sectors. Addressing the media, Chouhan reiterated that India’s staple grains, fruits, major crops, millets, and dairy products remain completely secure and face no threat whatsoever.
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World confident of stability after deals with US, EU: Modi
New Delhi: Prime Minister Narendra Modi told the Parliament on Thursday that the world is feeling more confident of stability after India's trade deals with the EU and the US. Replying to a discussion on the Motion of Thanks to the President's Address, Modi said India does not have to either look back or stop, but only move forward to achieve the goal of Viksit Bharat. "India is signing future-ready trade deals with several nations. In the last few days, we have signed trade deals with nine big nations, including the 'mother of all deals' with the 27-nation bloc of the European Union," he said. "When the trade deal with the European Union took place, the world became more confident of stability. After the trade deal with the US, the world has still more confidence... It is a good sign for the world," Modi said. |
