New Delhi, Feb 9 (NationPress) The India-US Bilateral Trade Agreement (BTA) represents a significant achievement in India's global trade relations, ensuring lasting preferential access for exports within the US market, which is estimated to exceed $30 trillion, as noted in an official announcement released on Monday.

This agreement provides extensive tariff adjustments, duty-free entry for a wide range of products, improved cooperation in digital and technological sectors, and a strategically designed framework to protect India's farmers, MSMEs, and local industries.

With India's overall exports to the United States recorded at $86.35 billion in 2024, the agreement greatly boosts competitive access in vital sectors such as textiles, leather, gems and jewellery, agriculture, machinery, home decor, pharmaceuticals, and technology-driven fields.

According to the agreement, tariffs on $30.94 billion worth of these exports have been decreased from 50 percent to 18 percent, while tariffs on an additional $10.03 billion have been entirely eliminated. This translates to a significant portion of Indian products entering the US market facing either dramatically reduced tariffs or completely duty-free entry, thereby enhancing price competitiveness.

Indian textiles and apparel exports, which are labor-intensive, will see tariff reductions from 50 percent to 18 percent, with silk receiving zero-duty access in a $113 billion US market for these products. Similarly, machinery exports will benefit from reduced tariffs to 18 percent, opening up opportunities in a $477 billion US market, as highlighted in the statement.

The agreement also greatly benefits India's leather and footwear sectors, establishing the country as the most preferred supplier in the US market. Tariffs on these exports have been cut from 50 percent to 18 percent, enhancing access to a $42 billion market.

Given the labor-intensive character of the leather and footwear industry, increased market access is anticipated to bolster manufacturing growth and job creation, particularly within MSMEs and production hubs.

Additionally, tariffs on gems and jewellery exports have been lowered from 50 percent to 18 percent, allowing preferential access to a $61 billion US market. Furthermore, zero-duty market access has been achieved for key product categories, including diamonds, platinum, and coins, covering a US market worth $29 billion.

In another notable achievement, Indian agricultural exports valued at $1.36 billion have gained zero additional US duties, while essential products like spices, tea, coffee, fruits, nuts, and processed foods enjoy zero-duty status.

Sensitive sectors such as dairy, meat, poultry, and cereals remain fully protected under the India-US trade agreement, as further explained in the statement.

The agreement creates a distinct tariff advantage for India. While duties on Indian goods have been minimized, numerous competing suppliers still endure high tariffs in the US market, such as China (35 percent), Vietnam (20 percent), Bangladesh (20 percent), Malaysia (19 percent), Indonesia (19 percent), Philippines (19 percent), Cambodia (19 percent), and Thailand (19 percent), the statement noted.