India and the United States have reached an interim trade deal to improve economic ties and reduce long-standing tariff disputes. This temporary framework is seen as a step toward a broader trade agreement expected later this year.
Under the deal, the US will remove or lower tariffs on a number of Indian products. Some goods that faced high duties in the past will now enjoy zero or reduced tariffs, making it easier for Indian exporters to compete in the US market.
Commerce Minister Piyush Goyal listed several products that will enter the US without extra taxes, including gems and diamonds, generic medicines, smartphones, aircraft parts, and auto components. Several agricultural products will also benefit, such as tea, coffee, spices, coconut and coconut oil, cashews, areca nuts, and fruits like mangoes, bananas, and avocados.
The deal will particularly help high-end motorcycles, including Harley-Davidson, which will now be cheaper to export. However, electric vehicles and some other items are still subject to tariffs.
The Indian government stressed that sensitive sectors are protected. Products like dairy, sugar, cereals, and genetically modified items will not see reduced tariffs when entering India. Officials also said the agreement will not harm farmers, small businesses, or traditional crafts.
While the deal has been welcomed by exporters, some critics are concerned. Farmer groups and opposition leaders fear that zero tariffs on imported goods may hurt local farmers and small producers by exposing them to competition from abroad.
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