India, US trade framework offers tariff clarity for exporters: Experts
The finalisation of a framework for signing a trade pact between India and the US has provided an immediate certainty and predictability to domestic exporters at the tariff front, experts say.
As per the framework, the US will reduce reciprocal tariffs on India to 18 per cent from 25 per cent. The US has already removed the additional 25 per cent punitive tariff which it imposed on India for buying Russian crude.
They said that the tariff on India is the lowest compared to its competitor nations such as China, Indonesia, Vietnam and Bangladesh.
Rudra Kumar Pandey- Partner, Shardul Amarchand Mangaldas Co, said the framework provides much-needed operational clarity on the recent tariff rationalisation.
The framework explicitly confirms that a reciprocal tariff rate of 18 per cent will apply across several key Indian export sectors, including textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home decor, artisanal products, and selected machinery ...