There has been a very important and positive turn in the trade relations between India and America. Now Indian goods will get special preference in the American market compared to other competing countries, as a part of which lower import duty (tariff) will be imposed on Indian products compared to other countries. Union Commerce and Industry Minister Piyush Goyal, who was on a two-day visit to Egypt's capital Cairo, gave this important information while talking to journalists on Sunday.
Union Minister Piyush Goyal had said that American President Donald Trump and Prime Minister Narendra Modi had agreed on this issue a few months ago. Both the leaders had also announced the outline of a comprehensive trade agreement, in which it was decided that India would get the opportunity to trade in the American market with lower tariffs than its competitor countries.
India and America finalized the outline of the first phase of Bilateral Trade Agreement (BTA) in February last. This agreement was expected to be signed earlier, but due to changes in America's tariff policy, negotiations had to be postponed. After the US Supreme Court recently struck down President Trump's reciprocal tariffs, the US is exploring options for a new tariff structure under the provisions of the Trade Act. Both the countries are trying to complete the first phase of the agreement by the end of the current financial year, and once the final tariff regime is finalized, Indian exporters are likely to benefit greatly from it.
On the other hand, while talking about his visit to Egypt, Piyush Goyal had said that the economies of India and Egypt are not competitors, but complementary. India can fulfill many needs of Egypt and India can also import essential goods from Egypt. There has been detailed discussion between the two countries regarding increasing cooperation in startup, research, education and service sectors.
Goyal had added that Egypt can play a very important role as a 'gateway' in strengthening India's relations with Africa. During this visit, apart from meetings with the Egyptian Prime Minister and counterpart ministers, meetings are also being held between businessmen of the two countries. A big Egyptian business group has shown keen interest in investing in 7 to 8 sectors including education and food processing in India, which will strengthen the economic partnership between the two countries in the future.