Historic trade agreement between India and America, America removed 25% additional duty; Understand the whole deal from these 10 things:

New Delhi/Washington. Today a new era has begun in the trade relations between India and America. Both countries have finalized an interim trade deal. Under this agreement, America has not only reduced the tax on Indian goods to 18 percent, but giving the biggest relief, it has also completely withdrawn the additional 25 percent duty imposed on Indian imports. This move is expected to provide a tremendous boost to Indian exporters, especially the textile and gem industries.

Let us understand every important thing about this mega deal in 10 points:

1. Indian market opened for American goods

Under this agreement, India will reduce or completely remove import duties on all American industrial goods and many agricultural products. This mainly includes nuts, fresh fruits, soybean oil, wine, spirits and animal feed.

2. Sanjeevani to Indian textile and leather industry

America now only on Indian goods 18% tariff Will apply. India’s textile industry (readymade garments), leather, footwear, plastics, rubber, organic chemicals and handicraft products will directly benefit from this.

3. Extra burden on generic medicines and diamonds will be removed

If this agreement is fully implemented, the US will eliminate additional taxes on Indian generic drugs, gems and jewelery (diamonds) and aircraft parts. This will further ease the access of Indian medicines in America.

4. Big relief in aviation sector

Under the agreement, the US will also remove taxes on some aircraft and their parts imported from India, which will boost bilateral aerospace trade.

5. Barriers to medical devices will be removed

Both countries will eliminate non-tariff barriers that slow down trade. India will solve the old problems related to American medical devices, so that American medical devices will be easily available in the Indian market.

6. Relaxation of licensing rules on technology products

India will now eliminate stringent import licensing rules for US information and communications technology (ICT) goods. This will speed up the access of American technical products to the Indian market.

7. Improving access to agricultural products

India will remove legacy non-tariff barriers affecting US food and agricultural products, making it easier for US farmers to reach Indian consumers.

8. Purchase plan of 500 billion dollars

India will compete with America in the next five years 500 billion dollars An ambitious plan has been made to purchase goods worth Rs. This mainly includes energy, aircraft, precious metals, technical products and coking coal.

9. Emphasis on GPU and technical cooperation

Required for both country data centers Graphics Processing Unit (GPU) Like will promote trade of high-tech products. Along with this, it has also been agreed to expand joint technical cooperation.

10. Steps towards Bilateral Trade Agreement (BTA)

This is just the beginning! Both sides agree to a full Bilateral Trade Agreement (BTA) But will continue the conversation. In the future, America may consider India’s request to further reduce tariffs on Indian goods.