India–US BTA to boost semiconductor, critical tech access for data centres

The Commerce Ministry has assured Parliament that India has fully protected its agricultural sectors through a carefully designed Exclusion Category, and no tariff concessions are being given on rice, wheat, poultry, dairy, soyameal, maize, and millets in the interim agreement with the United States.

With India having offered “limited and carefully calibrated” tariff concessions on select agri products, the Commerce Ministry said that domestic sensitivities have been safeguarded through quotas, phased concessions, and partial duty cuts.

Subject to the conclusion of an Interim Agreement, the US will provide preferential market access to certain Indian goods, with the Commerce Ministry describing the concessions as part of a conducive environment for Indian farmers to sell to a huge American annual import market of over Rs. 14 lakh crore.

The Commerce Ministry noted that, in the backdrop of growing demand, imports of animal feed products like DDGS and non-GM red sorghum have been considered in limited quantities with partial tariff concessions to ensure no adverse impact on domestic feed crops.

On the US Supreme Court invalidating reciprocal tariffs, India is studying all developments thereafter for their implications and remains engaged with Washington.

On digital trade, subject to the conclusion of the Interim Agreement, the Ministry said that both sides have committed to addressing discriminatory or burdensome practices and other barriers to digital trade.

Stating that India and the US will set a clear pathway to achieve robust, ambitious, and mutually beneficial digital trade rules as part of the BTA, the Commerce Ministry said that the move will “strengthen India’s digital infrastructure by ensuring access to advanced semiconductor chips, server components, and critical technologies needed for data centres and the Digital India initiative, enabling scalable, high-performance computing.”

As per the framework of the Interim Agreement, India is set to receive concessions for products where tariffs have been imposed after Section 232 investigations. The Ministry further added that the US will remove the additional tariffs on certain aircraft and aircraft parts from India imposed under Section 232 proclamations on aluminium, copper, steel, and their derivatives.

A preferential tariff rate quota will also be provided for Indian automotive parts facing additional tariffs imposed under the Section 232 proclamation, consistent with US national security requirements. CNBCTV18