India-US trade deal: A look at key beneficiaries

India and US have reached a framework for an interim agreement regarding reciprocal and mutually beneficial trade (interim agreement).

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Here is a look at key benefits for various sectors

Leather and Footwear:

Tariffs to be slashed from 50 per cent on exports from India to 18 per cent with access to market of USD 42 billion. It will benefit finished leather, leather footwear and footwear components.

Competitive Edge in terms of additional duties levied by USA (presently) over other Global exporters- China (35 per cent), Vietnam (20 per cent), Indonesia (19 per cent) Cambodia (19 per cent), Philippines (19 per cent), Thailand (19 per cent), etc.

Gems and Jewellery:

Tariffs on Gems & Jewellery slashed down from 50 per cent to provide most preferential reciprocal tariff to 18 per cent with access to market of USD 61 billion.

Additionally, 0 per cent duty market access of USD 29 billion for major products like Diamonds, Platinum, Coins etc.

Cut and Polished Diamonds, Lab-grown Synthetic Diamonds, Coloured Gemstones

Synthetic Stone, and Articles of Gold, Silver, Platinum & Others will benefit.

Textiles & Apparels:

Tariffs to be slashed from 50 per cent on exports from India to 18 per cent (Specifically Silk- 0 per cent) with access to market of USD 113 billion.  Ready-made Garments,  Carpets, Hand-made textiles, Cotton Textiles, etc. to benefit.

Competitive Edge in terms of additional duties levied by USA (presently) over other Global Exporters- China (35 per cent), Vietnam (20 per cent), Bangladesh (20 per cent), Indonesia (19 per cent)

Home Décor:

Tariffs on Home Decor to be slashed from 50 per cent to 18 per cent on exports from India for products like wood and furniture, pillow, cushions, quilts, comforters, non-electrical lamps, etc. with access to market of USD 52 billion. 0 per cent duty free access to market worth USD 13 billion comprising of products like- seats, chandeliers, illuminated signs, parts of lamps, etc. Competitive edge in terms of additional ties levied by USA (presently) over other global Exporters- China (35 per cent), Vietnam (20 per cent), Malaysia (19 per cent), Indonesia (19 per cent), Cambodia (19 per cent), Thailand (19 per cent), etc.

Aircraft Parts and others:

US will apply zero additional duty on aircraft parts, machinery and parts generic drugs and pharmaceutical ingredients and elementary auto parts

Machinery and Parts

Machinery gets manufacturing boost with reduction of tariffs from 50 per cent to 18 per cent with access to market of USD 477 billion with current India exports of USD 2.35 billion.

Competitive Edge in terms of additional duties levied by USA (presently) over other Global exporters-Vietnam (20 per cent), Malaysia (19 per cent), Thailand (19 per cent) etc.

Toys:

Tariffs on Toys slashed significantly down from 50 per cent to 18 per cent to provide access to market of USD 18 billion.

Competitive Edge in terms of tariffs imposed on other global exporters- China (35 per cent), Vietnam (20 per cent), Indonesia (19 per cent), etc.

 Source: Department of Commerce under the Ministry of Commerce and Industry

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