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India Gains Trade Edge Over Vietnam, Bangladesh in US Deal: Amitabh Kant

Former NITI Aayog CEO Amitabh Kant stated that the interim India-US trade agreement framework significantly reduces US tariffs on Indian goods, enhancing competitiveness against rivals like Vietnam and Bangladesh. The deal protects sensitive Indian sectors like agriculture and dairy while promising job creation, particularly for women and youth. Kant framed the agreement as a strategic win that bolsters supply chain resilience against China and supports rupee stability. The framework, announced in February, commits both nations to broader trade negotiations and includes tariff reductions on textiles, footwear, and other key Indian export sectors.

Key Points: India-US Trade Deal Cuts Tariffs, Boosts Exports: Amitabh Kant

  • US tariffs on Indian goods cut to 18% from 50%
  • Boosts textiles, pharma, gems & footwear exports
  • Protects Indian agriculture and dairy sectors
  • Strengthens supply chains against China
2 min read

"India gains a competitive edge over rivals like Vietnam and Bangladesh...": Amitabh Kant on India-US trade deal framework

Former NITI Aayog CEO Amitabh Kant says India-US interim trade pact slashes tariffs to 18%, creating jobs and strengthening supply chains vs China.

"India gains a competitive edge over rivals like Vietnam and Bangladesh while protecting our agriculture and dairy sectors - Amitabh Kant"

New Delhi, December 7

India's former G20 Sherpa and ex-NITI Aayog CEO Amitabh Kant on Saturday said that India will gain a competitive edge over countries like Vietnam and Bangladesh, while protecting its agriculture and dairy sectors, after the announcement of the framework of the India-US trade agreement.

In a post on X, Kant highlighted that the Interim agreement has reduced the US tariffs on Indian goods to 18 per cent from the previous hefty tariff of 50 per cent.

"India and the US interim trade deal slashes US tariffs on Indian goods to 18% from a severe 50%, unlocking massive opportunities for our exporters in textiles, pharma, gems, footwear and more. India gains a competitive edge over rivals like Vietnam and Bangladesh while protecting our agriculture and dairy sectors, creating lakhs of new jobs (especially for women and youth), and powering digital infrastructure and Make-in-India initiatives..." he wrote.

Kant further stated that this interim deal is a strategic win for the country as it strengthens supply chains against China and supports the stability of the Indian currency.

"This is a strategic win that strengthens supply chains against China and supports Rupee stability. Massive credit to PM Modi for his bold leadership and vision. My compliments to Piyush Goyal for his drive and dynamism and to Commerce Secretary Rajesh Agrawal for his determination and hard work. Mutually beneficial bilateral relationships are a key step towards Viksit Bharat," he wrote.

On February 6, India and the US announced a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade.

The joint statement said that the framework reaffirms the countries' commitment to the broader Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.

As per the joint statement, the US will apply a reciprocal tariff rate of 18 per cent on Indian originating goods, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery.

The United States will also remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats, the joint statement said.

- ANI

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Reader Comments

R
Rohit P
A strategic win indeed. Strengthening supply chains away from China is crucial for our long-term economic security. The focus on creating lakhs of jobs, especially for women, is the most promising part. Hope the benefits actually reach the grassroots and aren't just for big corporations.
A
Arjun K
While the deal sounds positive, I'm cautiously optimistic. We've heard "massive opportunities" before. The real test will be in implementation and ensuring our MSMEs have the support to navigate the new rules. Let's see if it truly powers 'Make-in-India' on the ground.
S
Sarah B
As someone working in the gems and jewellery sector in Surat, this news is a big relief. The previous 50% tariff was killing our exports. A more level playing field against Vietnam and Bangladesh is exactly what we needed. Hope this interim deal becomes permanent soon!
K
Karthik V
Good step forward. Protecting agriculture and dairy was non-negotiable, glad they managed that. The rupee stability angle is interesting. But we must also ask what concessions we gave in return? The details of the "reciprocal" part matter a lot.
M
Meera T
This is the kind of diplomacy we need. Mutually beneficial deals that create jobs and build infrastructure. The removal of tariffs on aircraft parts is a big boost for our aerospace ambitions. Jai Hind! ✈️

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