India and United States (US) reach framework for first phase of bilateral trade agreement

Key facts

• India and the United States (US) have announced a framework for the first phase of a bilateral trade agreement to reduce import duties on various goods.
• The legal agreement is expected to be signed by mid-March, with duty concessions taking effect on the day of implementation.
• India will eliminate or reduce tariffs on US industrial goods and agricultural products including dried distillers' grains, red sorghum, tree nuts, soybean oil, wine, and spirits.
• Specific US goods such as walnuts, almonds, pistachios, lentils, high-end cars, and motorcycles will enjoy duty concessions in India.
• Duty benefits will be extended to American medical devices including pacemakers, X-ray valves, diagnostic reagents, hearing aids, and artificial joints.
• American aircraft, semiconductor chips, and high-quality machinery will be allowed into India under the pact.
• India has fixed minimum import prices on products like apples to protect the interests of Micro, Small and Medium Enterprises (MSMEs) and farmers.
• Indian exports including spices, tea, coffee, cashew, mango, pineapple, and cocoa products will attract zero reciprocal tariffs in the US market.
• The agreement aims to address non-tariff barriers affecting Information and Communication Technology (ICT) goods and medical devices.