The framework for an interim trade agreement between India and the US sends a strong signal of confidence to global investors and offers a timely boost to competitiveness, technology access, and supply chain resilience, India Inc said on Saturday.
India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.
FICCI President Anant Goenka said it marks a pivotal step forward in advancing economic synergy between two of the world's largest democracies.
"This strategic partnership is designed to lower tariffs, ease regulatory bottlenecks, and unlock new opportunities across sectors. As India strengthens its position as a global manufacturing hub, this agreement offers a timely boost to competitiveness, technology access, and supply chain resilience".
While the US will reduce tariffs on Indian goods to 18 per cent from the present 50 per cent, India will eliminate or cut down import duties on all US industrial goods and a wide range of American food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.
"CII welcomes the India-US Interim Trade framework as a timely step towards a comprehensive Free Trade Agreement (FTA). It reflects growing trust, policy alignment and a shared commitment to open, predictable and rules-based trade -- sending a strong signal of confidence to global industry and investors," CII President Rajiv Memani said.
Harsh Pati Singhania, CMD JK Paper & Director JK Organisation, congratulated the Government of India on concluding the India-US Trade Deal and moving closer to a comprehensive bilateral trade framework.
"This agreement advances technology collaboration, strengthens high-quality manufacturing, and supports sustainable industrial growth. It opens new pathways for Indian industry to engage more confidently with global markets," he added.
According to a joint statement issued by both sides, India has expressed its intention to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
Source Name : Economic Times