Unprecedented Market Access
The recently established India-US interim trade agreement framework marks a significant milestone, granting Indian exporters access to an expansive market
valued at a staggering $30 trillion. This development, under the guidance of Prime Minister Narendra Modi, is poised to be a game-changer, particularly for Micro, Small, and Medium Enterprises (MSMEs), along with the agricultural and fishing communities. The increased export potential is projected to generate a substantial number of new job opportunities, especially for women and young individuals within the country, contributing significantly to economic growth and employment.
Key Sector Benefits
This trade pact is designed to provide a substantial boost across various key sectors. The US has agreed to reduce reciprocal tariffs on Indian goods to an average of 18 percent, creating immense market prospects in vital areas. Indian businesses can now more effectively penetrate the world's largest economy with products in textiles and apparel, leather and footwear, plastics and rubber goods, organic chemicals, home decor items, artisanal crafts, and select machinery. Furthermore, the elimination of tariffs on a broad spectrum of products, including generic pharmaceuticals, gems and diamonds, and aircraft parts, will enhance India's export competitiveness and invigorate the 'Make in India' initiative. India will also benefit from exemptions on aircraft parts, tariff rate quotas for auto components, and favorable outcomes for generic pharmaceuticals, ensuring tangible export gains.
Safeguarding Agriculture
Crucially, the agreement underscores India's unwavering commitment to protecting the interests of its farmers and sustaining rural livelihoods. Sensitive agricultural and dairy products have been completely shielded from any adverse impacts. This includes vital commodities such as maize, wheat, rice, and soya, as well as poultry, milk, cheese, ethanol (for fuel purposes), tobacco, specific vegetables, and meat products. This protective measure ensures that the livelihoods of farmers and the stability of rural economies remain secure, even as India expands its trade horizons with the United States.
