The statement said the interim pact is intended to deepen economic cooperation, expand market access and strengthen resilient supply chains between the two nations.
Describing the deal as a “historic milestone,” the White House said the agreement reflects a shared commitment to reciprocal, balanced and mutually beneficial trade, backed by concrete policy outcomes.What the framework provides
Under the key terms outlined in the joint statement:
India will eliminate or reduce tariffs on all US industrial goods.India will also lower duties on a broad range of American agricultural and food products, including:
- dried distillers’ grains
- red sorghum for animal feed
- tree nuts
- fresh and processed fruits
- soybean oil
- wine and spirits, among other products.
In return, the US will apply a reciprocal tariff rate of 18% on Indian-origin goods. This will cover key export sectors such as:
- textiles and apparel
- leather and footwear
- plastics and rubber products
- organic chemicals
- home décor and artisanal goods
- certain categories of machinery.
- Zero duties after signing
The statement clarified that subject to the successful conclusion and formal signing of the interim agreement, the US will remove tariffs entirely on a wide range of Indian goods, including:
- generic pharmaceuticals
- gems and diamonds
- aircraft parts.
Officials indicated that this would enhance India’s export competitiveness once the legal agreement is in place.Both sides signalled that the interim arrangement is a stepping stone toward a full-fledged BTA, which will cover additional market access commitments in the coming months.
–With agencies inputs
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