India-US Interim Trade Deal to Boost Chemical Sector Exports, Says ICC
The Indian Chemical Council (ICC) announced that an interim India-US trade deal, reducing tariffs from 50% to 18%, will significantly improve the competitiveness of Indian exports. ICC President Ramya Bharathram stated this reduction would directly benefit the chemical sector and indirectly aid industries like textiles and pharmaceuticals. The move is expected to enhance market access and put India on par with other Asian countries, aiming for substantial export growth.
The Indian Chemical Council (ICC) has lauded a new interim trade deal between India and the United States, which includes a notable reduction in tariffs. According to ICC President Ramya Bharathram, tariffs on Indian goods entering the US, previously up to 50% under the Trump administration, will now average 18%. This cut is anticipated to significantly enhance the global competitiveness of Indian products, aligning them with rates faced by other major Asian exporters.Bharathram highlighted that the chemical sector, encompassing both organic and inorganic chemicals, is set to be a direct and major beneficiary, expecting improved market access and increased exports. The positive impact is also projected to indirectly extend across various critical Indian industries, including textiles, agriculture, electronics, semiconductors, leather, and pharmaceuticals, due to the essential role chemicals play in their supply chains.The agreement, established as a framework for a reciprocal and mutually beneficial interim deal, saw India successfully protect its sensitive sectors like agriculture and dairy during negotiations. Both countries have also agreed to tackle non-tariff barriers to facilitate bilateral trade further. This development, announced after a phone call between Prime Minister Narendra Modi and US President Donald Trump, aims to expand bilateral trade from USD 191 billion to USD 500 billion by 2030, signaling a strong positive outlook for India's export industries.
