New Delhi: India and the United States agreed to a focus on increasing market access, lowering import duties, and promoting supply chain integration as part of a new bilateral trade paradigm. In so doing, these agreements are set to help cement trade relations and resolve outstanding trade issues between the two.
Minister of State for Industry and Commerce Jitin Prasada made the announcement in the Lok Sabha on Tuesday. In his written reply, Prasada said that the US has not imposed retaliatory tariffs on India yet, thus a visible relations improvement was due. The assumption about the final joint agreement being signed lies on its particularities, under which the harmonious interaction aims to touch on the usual concerns, those of removing constraints of either tariffs or non-tariff hurdles, and focusing on the weighted bending of the market.
Furthermore, as a further obstruction for various countries that have hitherto been violent, the United States has put into contemplation through a Memorandum on Reciprocal Trade and Tariffs to vigorously investigate wrongly advantageous trade agreements that may be damaging the U.S. economy owing to rather disadvantageous reciprocal practices by its trading partners. In the event of breaches in reciprocal trade, it will impose trade restrictions on countries that have fallen under the scope of the investigation.
Additionally, Prasada asserted that tariffs on Indian commodities showed a decline, with the simple average industrial tariff dropping to a rate of 10.66% after the 2025-26 Union Budget. Trade engagement remains high between India and the U.S. on the export of major commodities such as mineral fuels, drug formulations, precious stones, edible vegetables, petroleum products, and electronic products.
Both the countries have aimed at interpreting the nature of a balanced and open trading environment in order to boost industries from either side.
[Source Credit: NDTV]
