India-US Trade Agreement: Focus on Market Access, Tariff Reduction

New Delhi, Mar 25 (PTI) India and the US would focus on increasing market access, reducing import duty and non-tariff barriers, and enhancing supply chain integration in the proposed bilateral trade agreement, Parliament was informed on Tuesday.

In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said that as on date, reciprocal tariffs have not been applied by the US on India.

He said that the government continues to engage with the US to achieve enhancement and broadening of bilateral trade ties in a mutually beneficial and fair manner.

"Both countries plan to negotiate a mutually beneficial, multi-sector Bilateral Trade Agreement. Both countries would focus on increasing market access, reducing tariff and non-tariff barriers, enhancing supply chain integration and resolving bilateral trade issues," Prasada said.

The US has issued the Memorandum on Reciprocal Trade and Tariffs on February 13, wherein the Secretary of Commerce and US Trade Representative are to take necessary actions to investigate harm to America from any non-reciprocal trade agreements adopted by trading partners and provide a report with detailed proposed remedies for each trading partner, based on which, US action against relevant country could, thereafter be undertaken.

In a separate question on tariffs on agri products, the minister said that as per WTO 2023, India's simple average tariff rate is 17 per cent, with simple average agricultural tariff (which includes textiles) being 39 per cent and for industrial goods 13.5 per cent for 2023.

Post Union Budget 2025-26, the simple average industrial tariff has reduced to 10.66 per cent.

Top 10 commodities of India's export to the US in 2023-24 are drug formulations, biologicals (USD 8 billion); pearl, precious, semiprecious stones pearl, precious, semi-precious stones (USD 6.57 billion); petroleum products (USD 5.83 billion); telecom instruments (USD 5.82 billion); gold and other precious metal jewellery (USD 3.3 billion); iron and steel products (USD 2.78 billion); ready-made garments of cotton including accessories (USD 2.74 billion); electronic components (USD 2.69 billion); cotton fabrics, made ups etc. (USD 2.61 billion); and marine products (USD 2.5 billion).