New Delhi, Feb 20 (NationPress) The Minister of Commerce and Industry, Piyush Goyal, announced on Friday that the interim trade deal between India and the United States is expected to be operational by April this year.

In the meantime, a three-day meeting between Indian and US officials is set to commence in the US on February 23 to finalize the legal text for this interim trade agreement.

Additionally, the minister indicated that India's free trade agreements (FTAs) with the UK and Oman are anticipated to be implemented in April, while the trade pact with New Zealand is projected for September.

On February 7, both the US and India confirmed in a joint statement that they have reached a framework for an interim agreement aimed at establishing reciprocal and mutually beneficial trade.

This India-US bilateral trade agreement signifies a critical advancement in India's global trade initiatives, ensuring sustained preferential access for Indian exports in the US market, which is valued at over $30 trillion, according to an official announcement.

The agreement will facilitate comprehensive tariff rationalization, zero-duty access for numerous product categories, enhanced digital and technology collaboration, and a meticulously structured framework to protect India's farmers, MSMEs, and domestic industries.

With India's total exports to the United States reaching $86.35 billion in 2024, this agreement substantially boosts competitive access across vital sectors such as textiles, leather, gems and jewellery, agriculture, machinery, home décor, pharmaceuticals, and technology-driven industries.

Furthermore, under this agreement, tariffs on $30.94 billion worth of exports have been slashed from 50% to 18%, while tariffs on an additional $10.03 billion have been reduced from 50% to zero. This means a significant portion of Indian goods entering the US market will now either encounter drastically lower tariffs or benefit from complete duty-free access, greatly enhancing price competitiveness.

India’s labour-intensive textiles and apparel exports will enjoy tariff reductions from 50% to 18%, with silk receiving zero percent duty access in a $113 billion US market for these products, while machinery exports will see tariffs cut to 18%, unlocking opportunities in a $477 billion US market, as per the statement.

This agreement also brings considerable advantages for India’s leather and footwear industry, establishing the country as the preferred supplier in the US market. Given the labour-intensive nature of these sectors, improved market access is expected to bolster manufacturing growth and job creation, particularly among MSMEs and production clusters.