The Governments of India and the United States have signed an interim tariff agreement aimed at reducing trade barriers and strengthening bilateral economic cooperation, according to PHDCCI President Rajeev Juneja.
The framework forms part of ongoing negotiations to expand two-way trade and lay the foundation for a comprehensive Bilateral Trade Agreement (BTA).
Under the agreement, the United States will apply a reciprocal tariff rate of 18 per cent on Indian-origin goods, including textiles, apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal products, and certain machinery.
Importantly, the agreement removes tariffs on select Indian exports, including generic pharmaceuticals, gems and diamonds, and aircraft parts, subject to successful implementation of the interim framework.
The US will also lift national security-related tariffs on Indian aircraft and aircraft parts imposed under steel, aluminium and copper measures, providing relief to India’s aviation sector.
The tariff changes will benefit multiple Indian industries.
Reduced barriers will improve access for Indian generic drug manufacturers to the US market, while gems and jewellery exporters are likely to see improved margins.
The aviation sector stands to gain from enhanced opportunities in aerospace manufacturing and MRO services.
Lower tariffs will also boost competitiveness for textile and apparel exporters, engineering goods, machinery, chemicals, plastics, handicrafts and home décor products.
A joint statement accompanying the deal said implementation would begin promptly, with detailed operational guidelines to follow.
Both countries reaffirmed their commitment to pursue a full BTA covering goods, services, digital trade, investment cooperation and supply chain resilience.
Dr Ranjeet Mehta, CEO and Secretary General of PHDCCI, said the interim agreement marks a significant step in India–US trade relations, offering expanded market access and a more stable trade framework for exporters in both countries.
Also Read: PM Modi Applauds Sadanandan Master’s Powerful Maiden Speech In Rajya Sabha
To read more such news, download Bharat Express news apps
