India will gain a competitive advantage over other exporting nations in accessing the US market after Washington reduced tariffs on Indian exports to 18%, Commerce and Industry Minister Piyush Goyal told the Lok Sabha on Wednesday.
With the United States bringing down the tariff on Indian exports to 18%, India will be better placed than several competing countries, as the revised duty is lower than that imposed on others, Goyal said during his address in Parliament.
“This tariff is lower than those imposed on several competing countries, thereby enhancing the competitiveness of Indian exports in the US market. This agreement also provides significant comparative advantages to Indian exporters, particularly in labour-intensive sectors and manufacturing,” Goyal said.
According to the Minister, these comparative advantages are expected to lead to a significant rise in India’s exports to the US across multiple sectors.
He informed the House that both sides have retained protectionist positions in certain sensitive areas.
“The Indian side has been successful in ensuring protection of its sensitive sectors, particularly agriculture and dairy. The US side, too, had certain sectors that it considered sensitive from its perspective,” he said.
Goyal added that India and the US will work together to complete the required technical processes and formal documentation linked to the trade agreement so that its full potential can be realised at the earliest.
He said the detailed contours of the agreement would be announced immediately after the completion of these processes.
On energy imports, the Minister said, “Diversification of energy sources in line with market realities and the evolving global landscape remains the core principle of our policy.”
US President Donald Trump announced on Monday that tariffs on Indian exports would be reduced to 18% from 50%, in return for India cutting down imports of oil and energy from Russia and scaling up purchases from the US and its partners.