President Donald Trump has signed an executive order lifting the 25% tariff on India for buying Russian oil. This was over and above the 25% “reciprocal tariff”, now brought down to 18% following the agreement struck on the framework for an interim trade deal.
Reports suggest that formal signing is expected to take place in the White House next month with Modi and Trump doing the honours. That is of course provided the mercurial Trump does not do an about turn or insist on adding new conditions outside this framework.
In a social media post, Prime Minister Modi noted that “This framework reflects the growing depth, trust and dynamism of India-US partnership. It strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more.”
Apart from generating large-scale employment for women and the youth, it would deepen investment and technology partnerships.
Commerce Minister Piyush Goyal in a social media post said “The agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products including maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat.”
Basic food items that do not fall within the purview of the agreement include wheat, rice, ragi, various types of millet, flour, barley and refined flour. Dairy products too remain untouched including milk, cheese, butter oil, ghee and so on.
Core vegetable and pulses remain protected potatoes, beans, peas, cucumbers, gherkins, frozen vegetables, mushrooms and so on.
The Indian market has been opened up for a range of US agricultural products including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits.
The US market opens up for the import of Indian textiles, apparel, leather products, plastic and rubber products, chemicals, select machinery and pharma.
