Blitz Bureau
NEW DELHI: The India-US Bilateral Trade Agreement (BTA) marks a major milestone in India’s global trade engagement, securing sustained preferential access for exports in the US market valued at over $30 trillion, according to an official statement issued on February 9. The agreement delivers comprehensive tariff rationalisation, zero-duty access across large product categories, enhanced digital and technology cooperation, and a carefully calibrated framework to safeguard India’s farmers, MSMEs and domestic industry.
With India’s total exports to the United States standing at $86.35 billion in 2024, the agreement significantly enhances competitive access across key sectors including textiles, leather, gems and jewellery, agriculture, machinery, home decor, pharmaceuticals and technology-driven industries.
Under the agreement, tariffs on $30.94 billion worth of these exports have been reduced from 50 per cent to 18 per cent, while tariffs on another $10.03 billion have been reduced from 50 per cent to zero. This means a substantial share of Indian goods entering the US market will now face either sharply lower tariffs or completely duty-free access, significantly improving price competitiveness.
India’s labour-intensive textiles and apparel exports gain tariff cuts from 50 per cent to 18 per cent, with silk securing zero per cent duty access in a $113 billion US market for the these goods while machinery exports see tariffs reduced to 18 per cent, opening opportunities in a $477 billion US market, the statement explained. The agreement delivers significant gains for India’s leather and footwear sector, positioning the country as most-preferred supplier to the US market. Tariffs on exports from India have been reduced from 50 per cent to 18 per cent, providing improved access to a US market valued at $42 billion.