India and United States reach framework for first-phase bilateral trade agreement

Key facts

• India and the United States announced a framework for the first phase of a bilateral trade agreement on Saturday.
• The framework will be converted into a legal agreement expected to be signed by mid-March.
• India will eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.
• India will grant duty concessions on US goods such as walnuts, almonds, pistachios, some lentils, high-end cars and motorcycles.
• India agreed to address long-standing barriers to trade in US medical devices and eliminate restrictive import licensing procedures for US Information and Communication Technology (ICT) goods.
• Minimum import prices have been fixed on certain products like apples to protect interests of MSMEs and farmers.
• India will eliminate import duties on certain US goods on the day the agreement comes into force, while duties on other items may be phased out over time.
• India will extend duty benefits on certain American medicines for neuro, heart and diabetes, cosmetics, medical devices, X-ray valves, diagnostic reagents, pacemakers, imaging apparatus, hearing aid, and artificial joints.
• India will allow American aircraft, semiconductor chips, and high quality machinery into its market.
• India's exports to the US including spices, tea, coffee, copra, coconut oil, areca nut, cashew, Brazil nut, chestnut, avocado, banana, guava, mango, kiwi, papaya, pineapple, shiitake mushroom, vegetable planting material and saplings, roots and tubers such as taro, barley, canary seeds, bakery goods, cocoa and cocoa products, sesame seeds, poppy seeds, and fruit jams and pastes will attract zero reciprocal tariffs in the American market.