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India-US trade deal: After having recently agreeing upon a interim trade agreement framework with India, United States has outlined the path forward for the ‘Daddy of all Deals’ via a fact sheet released on Monday, February 9.

The trade pact was announced last week after a telephonic conversation between PM Narendra Modi and US President Donald Trump when they agreed on a framework for an Interim Agreement.

Under the arrangement, India will benefit from several favourable factors such as reduction of tariffs to 18% from 50%, aiding exports of textiles and garments, leather and footwear, plastic and rubber products, organic chemicals, home decor items, artisanal goods.

This comes after New Delhi's commitment to halt purchases of oil from the Russian Federation, while also agreeing upon either eliminating or slashing tariffs on US industrial goods, along with select agricultural and food products.

These include dried distillers’ grains, red sorghum used as animal feed, tree nuts, fresh as well as processed fruits, soybean oil, and wine and spirits.

The 'Path Forward' For India-US Trade Deal

Laying out the roadmap ahead for both nations, “United States and India will promptly implement this framework and work toward finalizing the Interim Agreement with a view to concluding a mutually beneficial BTA to lock in benefits for American workers and businesses,” as per the United States fact sheet on India-US trade deal. 

"In line with the roadmap set out in the Terms of Reference for the BTA, the United States and India will continue negotiations to address the remaining tariff barriers, additional non-tariff barriers, technical barriers to trade, customs and trade facilitation, good regulatory practices, trade remedies, services and investment, intellectual property, labor, environment, government procurement, and trade-distorting or unfair practices of state-owned enterprises," according to the fact sheet.

Meanwhile. the United States and India are also committed to strengthen "economic security alignment to enhance supply chain resilience and innovation through complementary actions to address non-market policies of third parties as well as cooperating on inbound and outbound investment reviews and export controls."

The United States and India will also significantly increase bilateral trade in technology products and expand joint technology cooperation.