NEW DELHI: Ending months of uncertainty, India and US announced the finalisation of the first tranche of the trade deal early Saturday that will see Washington lower “reciprocal tariffs” on Indian exports to 18% over the next few days and New Delhi slash levies on several American imports.The India-US joint statement came with US President Donald Trump scrapping the 25% penalty on Indian exports for Russian oil purchases, a move that overnight makes made-in-India products, including those in the high seas, competitive in the American market. Labour-intensive sectors with significant MSME presence, textiles, leather and footwear and marine products, are expected to be big beneficiaries as they were facing strong headwinds due to the punishing 50% additional tariffs, which will now drop to 18% over the product-specific or MFN tariff that applies to all countries.Commerce and industry minister Piyush Goyal told reporters that India has opted for calibrated opening up, allowing American imports in areas where there were requirements, while protecting sensitivities in key segments such as agricultural and dairy products, including cereals, corn, sugar, soybean, genetically modified (GM) food products and fuel ethanol.While sensitive farm goods were the sticking point, India has sought to work out an arrangement where products such as apples and cotton long staple fibre will enter India at lower duty, but in specified quantities. Import duties will be slashed for pistachios, walnuts, almonds, soybean oil and some lentils, wines and whiskey as well as dried distillers’ grains and red sorghum for animal feed. In return, several Indian foods products, including bananas, guava, spices, tea, coffee and processed food items, will also get zero-duty access in US.

MUMBAI: Zero-duty access for diamonds and coloured gemstones to the US under the interim trade agreement framework will benefit the gems and jewellery sector, which was termed by industry leaders as a “critical inflection point” after bruising year for exports.The move could help reverse the sharp decline in shipments to India’s largest market, where cut and polished diamond exports fell by over 60% – from $3.64 billion to $1.45 billion – amid tariff-induced loss of competitiveness, they said.Kirit Bhansali, chairman of Gem and Jewellery Export Promotion Council, said, “Last year has been particularly difficult for the sector, and this step restores a level playing field for Indian exporters.”India and the US announced on Saturday that they had reached a framework for an interim trade agreement under which both sides will reduce import duties on a range of goods to boost bilateral trade.“This is a big breakthrough and will lead to more jobs. The tariff rollback will help revive exports and bring back confidence in the market,” said Ashok Gajera, MD Laxmi Diamonds.Under the framework, duties on jewellery have been brought down to 18%, offering what the industry described as immediate, if partial, relief. GJEPC has also urged govt to include lab-grown diamonds and synthetic gemstones in the exemption list, which currently stands at 18%.All India Gem and Jewellery Domestic Council (GJC) chairman, Rajesh Rode, said zero-duty access would give Indian exporters unprecedented entry into the US market. “This strengthens global competitiveness, improves margins, and ensures that artisans’ creations reach international consumers at fair prices.” GJC’s vice-chairman Avinash Gupta described the move as a game-changer for small and medium enterprises that form the backbone of the sector.