Piyush: Deal Opens $30 Trillion Market For Indian Exporters
The minister said several Indian goods, including agricultural products, would attract zero reciprocal tariffs in the US under the interim pact. Certain Indian fruits, vegetables, tea and coffee would also enjoy zero tariffs
New Delhi: Union commerce minister Piyush Goyal on Saturday said the interim trade agreement between India and the US would open access to a $30 trillion market for Indian exporters, while safeguarding the interests of domestic producers.
Briefing the media, the minister said the agreement had been framed with adequate protection for Indian farmers, fishermen, handloom workers and micro, small and medium enterprises. He said India’s trade approach was aimed at guarding against predatory pricing and irrationally cheap imports that undercut domestic manufacturing. He added that India already had among the lowest tariff regimes compared to several competitors in the region. He declined to comment on questions relating to the purchase of Russian oil, stating that the ministry of external affairs would respond.
Goyal said India had not extended any duty concessions to the US on dairy products, sugar or millets. He said quota-based duty concessions had been provided for certain products such as apples to protect domestic producers. India imports about six lakh tonnes of apples annually, including from the US.
Under the proposed trade pact, India has imposed a minimum import price of ₹80 per kg and an import duty of 25 per cent on apples from the US. This would restrict imports of apples priced below ₹100 per kg. Currently, imported apples attract a 50 per cent duty with an MIP of ₹50 per kg, effectively barring imports priced below ₹75 per kg.
“…The agreement reflects India's commitment to safeguarding farmers' interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables, meat, etc,” Goyal said.
With the US agreeing to remove tariffs on certain aircraft and aircraft parts from India, the Minister said companies such as Boeing and Airbus were viewing India as a major global sourcing hub. “Already Boeing and Airbus are large buyers of aircraft parts from India…I am told both these companies are looking at India as the largest foreign OEM for parts going forward and I have had conversations with the top board and CEO of both companies. There is a lot of excitement about the India-US partnership,” he said.
He said Boeing currently has over 265 commercial and military aircraft operating in India and sources over $1.25 billion worth of components and services annually from more than 325 Indian suppliers. Airbus, he said, plans to increase sourcing from India to $2 billion by 2030 from the current $1.4 billion.
The minister said several Indian goods, including agricultural products, would attract zero reciprocal tariffs in the US under the interim pact. Certain Indian fruits, vegetables, tea and coffee would also enjoy zero tariffs. He added that India had extended duty concessions to the US in sectors such as alcoholic beverages, cosmetics and medical devices.
Goyal said tariff reductions would boost exports from labour-intensive sectors such as textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal products and select machinery. He said tariffs would also be reduced to zero on a range of products including generic pharmaceuticals, gems and diamonds, and aircraft parts, strengthening export competitiveness and the Make in India programme.
