North India Statesman
[ad_1]
Business Desk, New Delhi. A new chapter is going to be added in the economic relations between India and America. Under a major interim trade deal between the two countries, America has reduced the huge 50% tariff on Indian products to just Rs. 18% Have agreed to do. After this agreement, America’s huge market worth 30 lakh crore dollars ($30 Trillion) will open up for Indian exporters, especially small businessmen and farmers.
Although the two countries have currently issued a joint statement, this agreement by mid-March A formal signing is expected, after which the new rates will become effective.
1. Huge cut in tariff: Wings for Indian exports
India will directly benefit from America’s reduction in tariff from 50% to 18%. Textiles, Leather, Footwear, Plastics, Rubber and Handicrafts Industries will get it. This will not only increase exports but will also create new employment opportunities at the domestic level.
2. Generic medicines and diamonds will be completely duty free
Tariffs on many important products have been reduced under the agreement. Absolutely zero (0%) Will be done. These include Indian generic medicines, gems and jewelery and aircraft parts. This will ease the access of Indian medicines in the American market and will greatly strengthen the country’s jewelery industry.
3. Indian agriculture sector gets ‘security shield’
Keeping in mind its rural economy, India has not made any compromise on sensitive agricultural and dairy products. Corn, wheat, rice, soy, poultry, milk, cheese and meat Such products have been kept completely safe, so that the interests of Indian farmers are not affected.
4. Wine and luxury products will be cheaper
In return for the agreement, India will also reduce import duties on American industrial and some agricultural products. in these Wine, spirits, tree nuts, fresh fruits and soybean oil Are included. Apart from this, India has also agreed to simplify the rules for America’s medical device business.
5. Digital Trade and High-Tech Partnership
Keeping in view the future needs of both the countries GPU (Graphics Processing Units) And will increase cooperation in data center technology. Barriers to digital trade will be removed, which will directly benefit the IT sector.
6. Big investment on energy and technology
India aims to be closer to America in the next five years $50 thousand crore Energy products, aircraft parts and technology products have to be procured. This will take India’s energy security and aviation sector to new heights.
11 important points of the deal at a glance:
Tariff Reduction: American tariff will be reduced from 50% to 18%.
Zero Duty: No tax on medicines, diamonds and aircraft parts.
Agricultural Security: Products like rice, wheat and milk are safe.
American Wine: American wines and spirits will be cheaper in India.
Medical Device: Rules for American medical devices will be simplified.
Import Licensing: The licensing process for ICT products will be ended.
Power of Reciprocity: If one country changes the tariff, the other will also have the right.
Supply Chain: We will jointly deal with the anti-market policies of countries like China.
Energy Import: India will buy energy products worth $50 billion.
GPU Trade: Mutual cooperation will increase in data center and AI technology.
Digital Trade: Barriers to online business will be removed.
