US-India Trade Deal Reduces Tariffs to 18% on Key Exports

India and the United States have reached a framework for a bilateral trade agreement that reduces tariffs on Indian goods entering the U.S. market from 50 percent to 18 percent, while safeguarding New Delhi's sensitive agriculture and dairy sectors, Commerce and Industry Minister Piyush Goyal announced on Tuesday in New Delhi. The deal, first highlighted by U.S. President Donald Trump on Monday, comes after months of negotiations and is expected to boost Indian exports in key labor-intensive industries.

Goyal emphasized that the agreement fully protects India's agricultural interests, a point of contention in past talks due to the political sensitivity of farming in both nations. "India has ensured the interests of our agriculture and dairy sectors in full respect," he told reporters. He added that Prime Minister Narendra Modi has consistently prioritized these sectors to secure a bright future for those involved. The pact excludes sensitive items such as dairy, rice, wheat, meat, poultry, cereals, genetically modified foods, soymeal, and maize from any liberalization, maintaining barriers to imports that could affect domestic producers.

Under the agreement, duties on a range of...