“The profitable conclusion of the India-US interim commerce settlement framework is one other feather within the cap for the Authorities of India led by the Hon’ble Prime Minister, reflecting their means to construct robust, trusted world enterprise partnerships,” a quick assertion from the BSE chief mentioned.
The US and India have on Saturday issued a joint assertion that they’ve reached a framework for an Interim Settlement relating to reciprocal and mutually useful commerce (interim settlement) and have agreed to a framework.
In line with the joint assertion, India will remove or cut back tariffs on all US industrial items and a variety of US meals and agricultural merchandise, together with dried distillers’ grains (DDGs), purple sorghum for animal feed, tree nuts, recent and processed fruit, soybean oil, wine and spirits, and extra merchandise.
India had reservations about opening the complete US agricultural sector to Indian markets, which is why the interim commerce deal apparently missed the initially set timeline – fall of 2025. The Indian facet has secured safety for its delicate sectors, notably agriculture and dairy, on this deal.
Ishita Mukhopadhyay, Senior Professor, Division of Economics, College of Calcutta, famous that the joint doc remains to be very unclear and non-transparent on the commodities and companies included within the BTA.
“US has been making an attempt to extend market entry in agricultural sector in India for some years…Market entry in agriculture can push away the nation’s manufacturing away from the market. It has already been doing so anyway,” mentioned Ishita Mukhopadhyay.G. Vijay, Affiliate Professor, College of Economics, College of Hyderabad asserted that the joint assertion appears asymmetrical, with India committing to buy a particular quantum of worth of products from the US, whereas US solely reduces tariffs to reciprocal charges.
“This appears to be far more on account of geopolitical and safety concerns than financial causes, contemplating, US is extra depending on Indian imports than, the opposite means round and it’ll not be simple for US business to grapple with the availability chain disruptions,” G Vijay added.
Moreover, as per the joint assertion, each nations determined to handle non-tariff boundaries affecting bilateral commerce. India agrees to handle long-standing boundaries to commerce in US medical units and to remove restrictive import licensing procedures that delay market entry for, or impose quantitative restrictions on, US Data and Communication Expertise (ICT) items.
The joint assertion additionally famous that India intends to buy USD 500 billion of US vitality merchandise, plane and plane components, valuable metals, know-how merchandise, and coking coal over the subsequent 5 years. India and the US will considerably enhance commerce in know-how merchandise, together with Graphics Processing Models (GPUs) and different items utilized in information centres, and broaden joint know-how cooperation.
On February 2, a telephone name between Prime Minister Narendra Modi and US President Donald Trump led to the announcement of the conclusion of negotiations on the much-awaited commerce deal.
The Trump administration had imposed tariffs on main exporters to the US, together with India and China. There was a 50 per cent tariff on items from India getting into the US since August 2025. The tariffs have now been decreased to 18 per cent following the leaders’ current telephone name.
The BTA, formally proposed in February 2025, seeks to greater than double bilateral commerce, from the present USD 191 billion to USD 500 billion by 2030.
