'India opens door to imported wines, spirits under interim trade framework with US': Piyush Goyal

Piyush Goyal

• India permits US wine and spirit imports with a minimum price under trade pact
• Sensitive sectors like dairy, grains, and tobacco remain fully protected
• Tariffs on Indian goods to be reduced to 18 percent under interim agreement

Did our AI summary help?

India has allowed market access for imported wines and spirits with a minimum import price under the interim trade arrangement reached with the United States, Commerce and Industry Minister Piyush Goyal said on Saturday, while underlining that several sensitive sectors remain fully protected.

“We have opened wines and spirits, alcoholic beverages have been allowed with minimum import price,” Goyal said, adding that there has been no easing of duties or restrictions on a range of other products.

“There are no relaxations on groundnut, honey, malt, non-alcoholic beverages, essential oils and ethanol and tobacco,” he said, listing out categories kept outside the scope of concessions.

The comments came in a press briefing after India and the United States issued a joint statement on February 7 (Saturday), announcing that the two sides have agreed on a framework for an interim trade agreement. Under the proposed framework, tariffs faced by Indian goods are expected to be brought down to 18%.

According to the joint statement, India has agreed to eliminate or reduce duties on all U.S. industrial goods and a broad set of American agricultural and food products. These include dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, as well as wine and spirits.

At the same time, New Delhi has drawn clear red lines around what it terms sensitive sectors. Goyal said no duty concessions have been offered on maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat.

“The agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products,” he said in a social media post.

The joint statement also noted that, subject to the successful conclusion of the interim pact, tariffs would eventually fall to zero on a wide range of items. These include generic pharmaceuticals, gems and diamonds, and aircraft parts, a move that is expected to boost India’s export competitiveness and support the Make in India programme.

Both sides said they would move quickly to implement the framework and work towards finalising the Interim Agreement, with the aim of concluding a mutually beneficial bilateral trade agreement in line with the agreed terms of reference.