By Admin 
Union Commerce and Industry Minister Piyush Goyal shared complete information regarding the trade deal between India and America. He assured that the new trade agreement between India and America will not harm India’s farmers, dairy producers or rural employment.
He said that the government has ensured a tariff structure that protects the most sensitive food sectors of the country. It also opens up vast export opportunities for India’s manufacturing, technology producers and labour-intensive industries.
According to the Union Minister, after Washington reduced the tariffs imposed on many Indian products from around 50 percent to a flat 18 percent, India will have to face lower US tariffs compared to many competing economies. At the same time, India has not opened its markets to any American agricultural exports, which could have become a threat to domestic livelihoods.
He said that this agreement increases India’s export prospects in high-value sectors while keeping farmers completely safe.
1. India kept these areas completely safe
India has given zero tariff concession on many sectors. The tariff will be kept the same as before. This is a key part of the government’s political message.
(i) Food grains and essential agricultural products
India has given full protection to those essential food categories on which the livelihood of millions of farmers depends.
- Wheat
- Rice
- Maize
- soya and oilseeds
- Various categories of poultry and meat
- ethanol
- Tobacco
High tariffs on all these will remain the same as before and no new access will be given to American exporters.
(ii) The entire dairy sector of India
This sector has been described as 100 percent safe.
- Milk (in all forms)
- Thing
- butter
- Ghee
- Cream
- Curd
- buttermilk
- Whey
- Cheese
The government said that no market access has been given for American dairy products.
(iii) Vegetables, Fruits and processed foods
The government said that a long list of fresh, frozen, dried and canned products has been kept completely safe.
- fresh vegetables
Contains potatoes, garlic, mushrooms, bottle gourd, ladyfinger, green chillies, peas, beans, pumpkin and many more.
- processed vegetables
Frozen potatoes, peas and beans, mixed vegetables, canned products, preserved cucumbers and mushrooms.
- Dry Vegetables and Pulses
Dried Onion and Garlic, Dehydrated Powder, Green Peas, Chickpea, Beans, Sweet Potato.
- sensitive fruit
Banana and banana products
Mango and mango products
Citrus fruits such as orange, lemon, lime, and grapefruit
Berry category fruits, which also include strawberries.
(iv) Spices and taste heritage of India
Black pepper, cloves, chilli, cinnamon, coriander, cumin, turmeric, celery, fenugreek, mustard, cassia and other related spice products.
(v) tea
Black tea, green tea and tea bags will remain fully protected to protect India’s prestigious tea industry. According to the government, no changes have been made in agriculture, dairy, spices and tea sectors.
2. India is reducing tariffs on these American imports
These are those sectors which are outside the category of sensitive agriculture.
(i) Industrial and manufactured objects
- machinery
- electricals
- vehicles and their parts
- chemicals
This is in line with India’s policy of promoting manufacturing and exports.
(ii) Technology, Data-center and semiconductor hardware
India is reducing tariffs on all these-
- high-end servers
- AI Hardware and GPU
- data-center equipment
- semiconductor input
Its aim is to make India’s tech and AI infrastructure cheaper and more competitive.
(iii) Non-sensitive agricultural and food products
These products are mainly used by the high income group and are not considered a threat to small farmers.
- Dried Distillers Grains
- Red Sorghums
- tree nuts
- soybean oil
- Select Fruits
- Wine and Spirits
3. What is America giving to India in return??
The US will impose a uniform 18 percent tariff on a large portion of Indian exports, which previously attracted much higher tariffs. The sectors which will benefit from this are:
- Textiles and Apparels
- leather and footwear
- Plastic and Rubber Products
- Home Decor and Carpets
- Machinery and Chemicals
- Handicraft related products
- pharmaceuticals
- gems and diamonds
- aircraft parts
America is also withdrawing the metal security tariff previously imposed on some Indian products.
4. What’s the deal with wine?
In the trade deal between India and America, liquor has not been kept in the protected category but in the open category. It does not directly challenge Indian farmers, hence it has not been included in the sensitive list.
change in tariff
Earlier, duty on imported whiskey, gin, rum and similar spirits was around 150 percent. Under the new India-US and India-EU frameworks, it is expected to reduce to about 30 to 40 percent.
effect on prices
A mid-range Scotch or Bourbon, which costs around Rs 4,500 in Mumbai, may be available for around Rs 2,500 to Rs 3,000 after the implementation of the new prices.
Who will benefit from this trade deal?
Scotch and Irish whiskey brands will benefit from getting scale at lower prices to the European Union (EU). At the same time, American bourbon brands like Jack Daniels and Jim Beam will now compete in the Indian market against European whiskeys, instead of remaining in the higher bracket as before.
What will be the impact on consumers??
These lower duties will make import of bottled-at-origin spirits practical. With this, customers will get better quality and more options.
Impact on Indian craft spirits
This may increase price pressure on India’s craft whiskey and gin brands. To create a distinct identity in the market, they will have to put more emphasis on their flavors and heritage.
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