New Delhi, Feb 16 (NationPress) As India continues to expand its energy portfolio by sourcing increased quantities of oil and gas from the United States, it is also reshaping its import strategy for precious metals. The country aims to source additional gold and silver from the US market, moving away from its current focus on the UAE, according to a senior official.

This strategic shift is expected to lower prices and reduce the trade surplus with the United States.

The United States remains a leading global center for trading precious metals, exporting large volumes of gold (including scrap) and silver. Recent statistics indicate billions of dollars in trade, especially with countries like Canada, India, and the UK. Exports include raw, refined, and jewelry forms.

In 2024, India exported agricultural products worth $2.8 billion to the US while importing $1.5 billion, resulting in a current surplus of $1.3 billion in non-marine agricultural exports.

The official clarified that all agricultural products entering India must comply with biosecurity regulations, and genetically modified foods are prohibited. Imports of selected agricultural products from the US are also subject to Tariff Rate Quotas (TRQs).

The interim trade agreement between India and the US is expected to be a key driver for India's data center sector, enhancing access to advanced technology, investments, and lowering operational costs.

This trade pact addresses high import duties (previously between 20-28 percent) on enterprise GPU servers, which previously made establishing data centers in India more costly than in hubs like Singapore. Duty adjustments are projected to lower the cost of setting up GPU-ready data centers by around 14 percent.

The completion of the interim India-US Bilateral Trade Agreement introduces comprehensive tariff adjustments, zero-duty access for many product categories, improved digital and technology cooperation, and a well-structured framework to protect India’s farmers, MSMEs, and domestic industries, as per an official statement.

With India's total exports to the United States reaching $86.35 billion in 2024, the agreement significantly boosts competitive access across vital sectors, including textiles, leather, gems and jewelry, agriculture, machinery, home décor, pharmaceuticals, and tech-driven industries.

Under this agreement, tariffs on $30.94 billion worth of these exports have been reduced from 50 percent to 18 percent, while another $10.03 billion worth has been reduced from 50 percent to zero. This translates to a significant portion of Indian goods entering the US market now benefiting from greatly reduced tariffs or complete duty-free access, greatly enhancing price competitiveness.