Big win for Kerala: India to make gains with zero duty, joint statement on India-US trade deal

NEW DELHI: The framework for the India-US agreement, which aims to increase bilateral trade to $500 billion annually, has been finalised. The two countries have issued a joint statement. The interim agreement will be signed soon. The US has completely waived tariffs on important export products from Kerala, including tea, coffee, spices, coconut oil and cashew nuts. That is, zero duty.

The reduction in duty on marine products to 18 percent will boost the fishing sector. It will also benefit rubber exports. Imports from the US to India at zero duty are mainly industrial products. India imports mainly industrial products from the US at zero duty.

The US's reduction of the reciprocal tariff from 50% to 18% is a major boost for India's export sector. India will benefit from Trump's imposition of a higher tariff of 18 percent on other countries exporting the same products. This will make the US business community more interested in buying from India. The deal will also boost pharmaceutical and smartphone exports worth $13 billion.

Union Commerce Minister Piyush Goyal announced that the joint statement was finalized on Friday night. The talks initiated by Modi and US President Donald Trump on February 13, 2025 are becoming a reality.

Russian oil imports to continue: India

The Ministry of External Affairs has indicated that it will continue to import Russian oil. The position was clarified within hours of the India-US public statement regarding the bilateral trade agreement. The Ministry of External Affairs reiterated a clear message to the US that pressure including additional tariffs will not be able to stop Russian oil imports. Ensuring energy security for 140 crore Indians is a priority of the central government. The Ministry of External Affairs added that diversifying energy sources according to market conditions and international trends is part of the strategy.

Farmers' interests will be protected

• Commercial Minister Piyush Goyal said that the agreement is fully protecting the interests of farmers.
• Genetically modified products will not be allowed to enter.
• Essential commodities produced in large quantities in the country, including maize, rice, wheat, millet, ragi, bananas, citrus fruits, chickpeas, sugar, soybeans, cereals, meat, poultry, dairy products, ethanol and tobacco, will be fully protected. No tariff concessions will be given. Tariff concessions will also not be given to sweet potatoes, frozen vegetables, beans and pulses.

'Zero' US tariffs

1. Tea, coffee, spices
2. Coconut oil, vegetable wax, areca nut
3. Cashew nuts, Brazil nuts, avocados, guavas, mangoes
4. Pharmaceutical products, smartphones
5. Gems, diamonds
6. Aircraft parts
7. Kiwi, papaya, pineapple, mushrooms
8. Vegetable roots, barley, bakery products, cocoa products, sesame, poppy
9. Chestnuts, many types of fruits, vegetables
10. Generic drugs used for cancer treatment

18 percent duty

1. Textiles, leather, footwear
2. Plastics, rubber, bio-chemicals
3. Home decor items, handicrafts, and some machinery