The India-US trade pact also does not include sugar and dairy, they added. Hence, ensuring that Indian farmers and dairymen are not impacted.
The update comes at a time when inclusion of agriculture and dairy sectors in the trade pact has led to a controversy in the country.
With US President Donald Trump and other top American officials stating that India has agreed to open up the agriculture sector as part of the agreement, Indian government has clarified that India remains committed to protecting the interests of its farmers.
US President Trump said that India would buy American products worth $500 billion as part of the latest trade agreement between the two countries.
Detailing the important aspects of the pact, Commerce and Industry Minister Piyush Goyal presented a snapshot of how the money would be spent. “The target of $500 billion bilateral trade will mean more exports as well as sourcing,” he said.
Read more: What will India buy from the US for $500 billion? Piyush Goyal answers
Aircraft orders already placed with Boeing were in the range of $70-80 billion, and once parts and related components are added, the total value could cross $100 billion, Goyal explained.
Commerce Secretary Rajesh Agrawal said that India already imports goods worth nearly worth $300 billion from the US, and the demand is expected to rise further as the economy expands.
Government sources indicated that India has already committed to buying items from the US which are imported from other nations, which includes oil, gas, aircraft, laptops, smartphones, and goods for data centres. Sources added that India imports $300 billion worth of products annually which will now be sourced from US as well, and India expects to hit $500 billion worth of imports from US over the next five years.
Commerce Ministry said that the first tranche of the BTA (Bilateral Trade Agreement) is ready, and both the sides hope to sign a joint statement in the next few days.
A formal agreement is also being drafted, which may be signed by mid-March. The Commerce Ministry said that tariff reduction by the US will be undertaken via an Executive Order once the Joint Statement is signed, while India’s MFN tariffs can be reduced only once the legal agreement is signed. The signing of the agreement is likely to be done virtually, in the deal which doesn’t have any investment commitment on either side.
Read more: India-US FTA: All the furore over inclusion of agriculture and dairy in the deal
