By Admin 
US Ambassador to India Sergio Gore has given a statement regarding the US-India trade deal. He called it the beginning of a new day and gave full credit for this agreement to the visionary leadership of US President Donald Trump and Indian Prime Minister Narendra Modi. According to him, this agreement will further strengthen the relations between the two countries.
Ambassador Gore said that America and India have agreed on the framework of an interim trade agreement. This framework will further pave the way for a larger bilateral trade agreement (BTA). This process formally started with the meeting of President Trump and Prime Minister Modi on 13 February 2025.
decision to reduce tariff
Under this agreement, India has decided to reduce or eliminate tariffs on many American industrial goods. Also, American food and agricultural products will get better access to the Indian market. This includes animal feed, dried distillers grains, red sorghum, nuts, fresh and processed fruits, soybean oil, wine and other products. This is expected to increase agriculture and food trade between the two countries.
Decision to impose 18 percent duty on some products
America has decided to impose 18 percent duty on some products coming from India. This includes textiles, textile goods, leather, footwear, plastics, rubber, chemicals, home decor items and handicrafts. However, it is a matter of relief that if the agreement moves forward, this duty on generic medicines, diamonds, gems and aircraft parts will be completely removed. This trade deal will also provide relief to the aircraft, auto parts and pharmaceutical industries. America has agreed to remove old duties imposed on some aircraft and their parts coming from India. In return, India will get special concessional facility on auto parts.
Nearly $500 billion deal with America in 5 years
Both countries have also acknowledged that not only taxes but also problems related to rules and procedures become obstacles in trade. Therefore, it has been agreed to reduce barriers related to medical equipment, IT products, agricultural goods and digital trade. India has also planned to buy energy products, aircraft, technical goods and coal worth about $500 billion from America in the next 5 years. This agreement will open new opportunities for employment, investment and technical cooperation for both the countries.