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In a significant stride towards strengthening bilateral ties and fostering economic growth, India and the United States have officially finalized an interim trade agreement. This landmark development, which sees the US reducing tariffs on various Indian goods, has been met with enthusiastic acclaim from Prime Minister Narendra Modi, who hailed it as “Great news for India and USA!”
PM Modi’s Vision: A Partnership of Trust and Dynamism
Taking to social media, PM Modi expressed his profound gratitude to President Trump for his “personal commitment to robust ties between our countries.” He emphasized that this new framework is a testament to the “growing depth, trust and dynamism” of the India-US partnership. More importantly, it’s set to be a powerful catalyst for India’s ambitious ‘Make in India’ initiative.
The Prime Minister highlighted the far-reaching benefits: “This framework strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more. It will generate large-scale employment for women and youngsters.” This agreement isn’t just about trade; it’s about empowering people and building a more prosperous future.
Unlocking Economic Potential: A $30 Trillion Market Awaits!
Echoing the Prime Minister’s optimism, Commerce and Industry Minister Piyush Goyal revealed the staggering potential of this agreement. He stated that it will unlock a massive “$30 trillion market for Indian exporters,” particularly benefiting MSMEs, farmers, and fishermen. This surge in exports is projected to create “lakhs of new job opportunities for our women and youth.”
So, what does this mean for Indian goods entering the US market? A significant tariff reduction! The US will slash reciprocal tariffs on a wide range of Indian products to 18 percent. This opens up immense opportunities in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal products, and select machinery.
Zero Tariffs on Key Sectors: Boosting Competitiveness
Even more exciting, tariffs will drop to zero on a broad spectrum of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts. This strategic move will significantly enhance India’s export competitiveness and further bolster the ‘Make in India’ drive on the global stage. India will also benefit from exemptions under Section 232 on aircraft parts, tariff rate quotas on auto parts, and negotiated outcomes on generic pharmaceuticals.
Safeguarding India’s Agricultural Heartbeat
Crucially, the agreement demonstrates India’s unwavering commitment to safeguarding its farmers’ interests and sustaining rural livelihoods. Sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables, and meat, will be completely protected. This ensures that while new opportunities open up, the backbone of India’s economy remains secure.
Strengthening Global Partnerships and Future Growth
PM Modi further articulated that this framework will deepen investment and technology partnerships, strengthening resilient and trusted supply chains. As India marches towards building a ‘Viksit Bharat’ (Developed India), this agreement underscores its commitment to future-oriented global partnerships that empower its people and contribute to shared prosperity.
What’s Next? Paving the Way for Further Growth
This interim framework also lays the groundwork for further tariff removal on a wide range of Indian goods, pending the successful conclusion of a comprehensive Interim Agreement. The future looks bright for India-US trade, promising continued collaboration and mutual economic benefit.
Source: Original Article
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