By Admin 
India-US Trade Deal: India and America have agreed to an interim trade agreement last Saturday. Under this, India will either eliminate or reduce tariffs on various food items and agricultural products coming from America. It is expected that this step will make many American imports cheaper for Indian consumers. This was informed in a joint statement issued by both the countries while announcing the framework of the interim trade agreement.
Which goods will be cheap?
Products coming from the US on which the tariff will be reduced include Dried Distillers Grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, packaged foods, various pulses and wines and spirits. Apart from these, prices of laptops, electronic gadgets and appliances are also likely to reduce. These changes in tariffs are part of the mutual commitments outlined in the interim agreement, which are aimed at reducing trade tensions and improving market access on both sides.
Which sectors of India will benefit?
“The United States and India are pleased to announce that they have agreed to a framework for an interim agreement on equitable and mutually beneficial trade,” the joint statement said. Under this, the United States will directly reduce the previously imposed 50 percent tariff on Indian goods to 18 percent. Out of this 50 percent, 25 percent was imposed as penalty for purchasing oil from Russia.
It is expected that this relief in tariff will bring back competitiveness for Indian exporters in the world’s largest consumer market. Due to this, Indian exporters exporting textiles and clothing, leather and footwear, plastic and rubber products, organic chemicals, generic medicines, home decor and handicrafts items, artisan goods, gems and jewelery will benefit.
Also read:
The fortunes of these companies in the infra sector shined, orders worth crores were received; Investors’ interest may increase