India is working hard to finalize a major trade deal with the United States. To make this happen, India has offered to reduce many import taxes and open its markets more widely to American products.
What’s Happening?
India currently charges much higher import taxes than the U.S. — about 13% more. Now, it has offered to bring this difference down to less than 4%. In return, India wants protection from any future tariff increases that were introduced during the Trump administration.
What India Is Offering:
India is ready to cut import taxes completely (zero tax) on about 60% of the items it imports.
This would give special access to nearly 90% of U.S. goods entering the Indian market.
India is also willing to relax import rules on items like U.S.-made aircraft, luxury vehicles, electric cars, medical equipment, oil products, and high-end food items.
What India Wants:
Easier entry for Indian exports like gems, garments, chemicals, shrimp, oilseeds, and fruits/vegetables into the U.S. market.
Equal treatment with America’s top allies in sensitive and high-growth sectors like artificial intelligence (AI), biotechnology, semiconductor production, and other advanced technologies.
Why This Matters:
This trade agreement could be a big step forward for both countries. It would help U.S. companies sell more in India and allow Indian industries to expand in American markets, especially in technology and exports.
Note: This report is based on information originally reported by Reuters.
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