1st tranche of India-US trade deal in 4-5 days, formal pact by m

New Delhi, Feb 5: India will launch the initial phase of its trade agreement with the United States within days, reducing tariffs on domestic exports to 18%, announced Commerce and Industry Minister Piyush Goyal on Thursday.

Goyal indicated that a joint India-US statement is expected within 4-5 days. Upon issuance of an executive order following the statement, the lowered U.S. tariff rates on Indian goods will take immediate effect.

“A more formalized and comprehensive pact is slated for finalization by mid-March,” he stated.

The minister highlighted India’s recent achievement of eight trade agreements, noting that the imminent U.S. deal will become the ninth. These agreements, negotiated under Prime Minister Narendra Modi’s leadership, align with India’s modernization goals, he emphasized.

Parallel to these developments, India has finalized terms of reference for a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC), reigniting discussions dormant for almost twenty years.

A comprehensive FTA with the six GCC nations is projected to enhance policy stability, attract investments, and bolster India’s food and energy security infrastructure, according to Goyal.

Key sectors such as food processing, infrastructure, petrochemicals, and ICT stand to gain substantially from the India-GCC partnership, which currently registers $179 billion in bilateral trade. Goyal described the prospective agreement as a “force multiplier for global economic growth.”

In related parliamentary proceedings, Goyal assured lawmakers that India’s agricultural and dairy sectors remain safeguarded in the U.S. trade deal, with these sensitive industries excluded from the agreement’s scope.

The minister affirmed that the agreement will generate opportunities for MSMEs, skilled professionals, and industrial sectors while deepening Indo-U.S. relations. He underscored its role in supporting India’s energy security and advancing domestic manufacturing and innovation capabilities.

The pact will facilitate access to cutting-edge technologies and accelerate India’s “Make in India,” “Design in India,” and “Innovate in India” global initiatives, Goyal concluded.

–IANS