India mulls zero-duty US imports to fast-track trade deal with strict rules of origin, including PLI sectors.

India is contemplating the possibility of zero-duty imports from the US in multiple sectors, including those covered by the Production Linked Incentive (PLI) scheme, as a means to accelerate a bilateral trade deal and undo reciprocal tariffs. The proposal comes with a condition of stringent rules of origin, mandating a 30-40% value addition. By considering this move, both countries aim to boost trade relations and enhance economic cooperation. This potential agreement could have significant implications for businesses and industries in India, particularly those involved in sectors eligible for the PLI scheme. It is seen as a strategic step towards strengthening ties between India and the US and fostering a more conducive environment for trade and investment. The development is closely watched by stakeholders and experts in the field of international trade, who recognize the potential benefits and challenges that such a deal could bring. As negotiations progress, both countries are expected to engage in further discussions to iron out the details and reach a mutually beneficial arrangement. The outcome of these deliberations could have a lasting impact on the trade dynamics between India and the US, shaping the future of their economic partnership.

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