India-US trade deal to give competitive edge over Vietnam: Amitabh Kant

Ex-NITI Aayog CEO Amitabh Kant states the India-US interim trade deal, which cuts US tariffs on Indian goods from 50% to 18%, gives India a competitive edge over Vietnam and Bangladesh, protecting agriculture and creating jobs.

Amitabh Kant on India's Competitive Edge

India's former G20 Sherpa and ex-NITI Aayog CEO Amitabh Kant on Saturday said that India will gain a competitive edge over countries like Vietnam and Bangladesh, while protecting its agriculture and dairy sectors, after the announcement of the framework of the India-US trade agreement. In a post on X, Kant highlighted that the Interim agreement has reduced the US tariffs on Indian goods to 18 per cent from the previous hefty tariff of 50 per cent.

"India and the US interim trade deal slashes US tariffs on Indian goods to 18% from a severe 50%, unlocking massive opportunities for our exporters in textiles, pharma, gems, footwear and more. India gains a competitive edge over rivals like Vietnam and Bangladesh while protecting our agriculture and dairy sectors, creating lakhs of new jobs (especially for women and youth), and powering digital infrastructure and Make-in-India initiatives..." he wrote. Kant further stated that this interim deal is a strategic win for the country as it strengthens supply chains against China and supports the stability of the Indian currency. "This is a strategic win that strengthens supply chains against China and supports Rupee stability. Massive credit to PM Modi for his bold leadership and vision. My compliments to Piyush Goyal for his drive and dynamism and to Commerce Secretary Rajesh Agrawal for his determination and hard work. Mutually beneficial bilateral relationships are a key step towards Viksit Bharat," he wrote.

Details of the Interim Agreement

On February 6, India and the US announced a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. The joint statement said that the framework reaffirms the countries' commitment to the broader Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.

Key Tariff Reductions

As per the joint statement, the US will apply a reciprocal tariff rate of 18 per cent on Indian originating goods, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery. The United States will also remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats, the joint statement said. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)