Washington: India and the United States are set to announce a major trade decision that will give top priority to zero tariff access for Indian exports to the US market. A joint statement from both governments is expected soon, outlining the products that will be allowed to enter the US without import duty.
Trade sources said the plan focuses on granting zero tariff or near zero tariff treatment to a wide range of Indian goods, covering exports worth nearly Rs 4 lakh crore. This is expected to provide strong relief to Indian exporters who have been affected by higher duties in recent years.
Sectors such as textiles and garments, leather and footwear, gems and jewellery, chemicals, plastics and rubber products are likely to be the main beneficiaries. With zero duty entry, these products will become more competitive in the US market and could see a rise in orders.
The move is seen as a reversal of earlier tariff increases that had raised the cost of Indian goods in the United States. Exporters said the zero tariff proposal could help them regain lost market share and strengthen long term trade relations with American buyers.
As part of the broader understanding between the two countries, India has also agreed to increase imports from the United States over the next five years. These imports are expected to include aircraft, energy products, technology equipment and items needed for digital and infrastructure projects.
Officials said the agreement safeguards sensitive sectors such as agriculture and dairy while opening new opportunities for manufacturing and export industries. The talks were aimed at ensuring balanced trade and stable economic ties between the two nations.
India and the United States remain key trading partners, with strong growth in trade volumes in recent years. The upcoming joint statement will provide details on the products covered and the timeline for implementation.
Once the zero tariff system is put in place, it is expected to give a fresh boost to Indian exports and strengthen economic cooperation between New Delhi and Washington.