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Effective with respect to goods entered for consumption, India products imported into the US will no longer be subject to the additional ad valorem rate of duty of 25%.

India’s latest interim trade agreement with the US cuts the tariff on Indian chemical exports from 50% to 18%. Indian companies gain from both lower duties and an added advantage over Chinese competitors who face twice as much duty on their products shipped to the US.

Under the trade agreement, the US and India will address burdensome practices and other barriers to digital trade will set a clear pathway to achieve robust, ambitious, and mutually beneficial digital trade rules.

India–US interim trade deal LIVE updates: The US and India commit to provide each other preferential market access in sectors of respective interest on a sustained basis, says the White House statement.

India has fully protected sensitive agricultural and dairy products such as maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat, as no duty concessions have been granted to the US on these goods under the trade agreement.

US President Donald Trump is expanding American farmers and producers’ access to one of the largest economies in the world under a trade deal with India, the United States Trade Representative has (USTR) said.

The agency, responsible for developing and promoting US foreign trade policies, also said that India has committed to eliminating or lowering tariffs for all US industrial goods and a wide array of agricultural products.

“From tree nuts and dried distillers’ grains to red sorghum and fresh and processed fruit, the US-India agreement will provide new market access for American products,” the USTR said in a social media post on Friday local time.

“President Trump is expanding American farmers and producers’ access to one of the largest economies in the world, with India committing to eliminate or lower tariffs for all US industrial goods and a wide array of agricultural products; address long-standing non-tariff barriers to trade; buy more American goods and services and purchase over $500 billion of US products,” it said in another post.#IndiaUSJointStatement | India-US agmt reflects India’s commitment to safeguarding #farmers’ interests & sustaining rural livelihoods by completely protecting sensitive #agri & #dairy pdts, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain… pic.twitter.com/VDpa63mnl9

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Prime Minister Narendra Modi on Saturday said the interim trade agreement with the US will strengthen ‘Make in India’ by opening up new opportunities for farmers and entrepreneurs, and create jobs for women and youngsters.

The prime minister also thanked US President Donald Trump for his personal commitment to robust ties between India and the US.

“Great news for India and USA! We have agreed on a framework for an Interim Trade Agreement between our two great nations,” Modi said in a post on X.

He said this framework reflected the growing depth, trust and dynamism of the India-US partnership.

The India-US trade pact will open a USD 30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen, Commerce and Industry Minister Piyush Goyal said on Saturday.

He said the increase in exports will create lakhs of new job opportunities for the country’s women and youth.

“Under the decisive leadership of PM @NarendraModi ji, India has reached a framework for an Interim Agreement with the US. This will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen,” Goyal said in a social media post.

Even as India and the US issue a joint statement on the interim trade agreement, which would bring down the tariff on Indian exports to 18%, the US has left a window open for revision.

The Donald Trump administration had imposed a 25% additional tariff on Indian goods as a penalty for the South Asian country’s continued oil purchases from Russia, sanctioned by the West for invading Ukraine.Energy products, aircraft, aircraft parts, precious metals, tech goods, and coking coal — worth up to $500 billion over five years.

White House order makes removal of extra 25% tariff on Indian goods effective from 12:01 am EST on February 7.

The US will cut tariffs on India to 18% from 50% earlier, opening up a $30 trillion market for Indian exporters, especially small businesses, farmers, and fishermen. ()NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.