India-United States Interim Trade Deal

India and the United States are finalizing an interim bilateral trade agreement, expected to be implemented by mid-March. Under this agreement, India will receive concessional duty access for garments made using American yarn and cotton, similar to benefits already extended to Bangladesh. This means Indian companies procuring US fibers, manufacturing garments, and re-exporting to the United States will gain duty-free access. India's Commerce and Industry Minister, Piyush Goyal, confirmed these developments, emphasizing the benefits for India's apparel sector and the domestic medical devices industry through various free trade agreements. He also addressed opposition concerns, stating that the deal has been calibrated to protect Indian farmers' interests. The United States will reduce reciprocal tariffs on Bangladeshi goods to 19%, with zero duty on garments made with US fibers, a model India is set to emulate.