India has secured an understanding with the United States that will give its goods preferential access to the American market, Union Commerce and Industry Minister Piyush Goyal said on Sunday. Under the proposed arrangement, Indian exports are expected to face lower import duties than those of competing countries. The understanding was reached between Prime Minister Narendra Modi and US President Donald Trump as both nations announced a framework for their bilateral trade agreement (BTA).
Modi-Trump Understanding
Speaking to journalists in Cairo during his two-day visit to Egypt, Goyal said the preferential market access arrangement had already been agreed upon by the two leaders when they announced the trade framework a few months ago.
According to news agency ANI, the minister said the understanding would ensure that Indian goods receive special access to the US market, with lower import duties compared to those imposed on competing nations.
The proposed arrangement is expected to strengthen India’s position in the American market and improve the competitiveness of its exporters. However, the final details will depend on the ongoing negotiations between the two countries.
Tariff Changes Delayed Deal
India and the US finalised the framework for the first phase of their bilateral trade agreement in February. The initial expectation was that the agreement would be signed earlier, but changes in Washington’s tariff policy led to further discussions.
A recent assurance from US officials indicated that Indian goods would receive a comparative advantage in terms of tariffs under the proposed arrangement.
Both countries are working towards completing the first phase of the agreement by the end of the current financial year. An official said last week that negotiations were continuing, with the final tariff structure remaining a key factor in determining the timeline.
The discussions have also been influenced by changes in US trade policy following the US Supreme Court’s decision to strike down President Trump’s reciprocal tariffs.
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