The Federation of Indian Export Organisations (FIEO) praised the finalization of the India-US trade deal, where the United States has agreed to lower tariffs on all ‘made in India’ products to 18 percent. This move is seen as a significant step in enhancing bilateral trade relations between the two nations. Sectors like engineering goods, textiles, pharmaceuticals, and gems and jewellery are expected to benefit from this tariff adjustment.
SC Ralhan, President of FIEO, expressed that this agreement will boost the competitiveness of Indian goods in the US market and spur export growth across various sectors. The reduced tariffs are anticipated to unlock pending orders, especially in labor-intensive industries such as apparel and textiles, which usually secure summer season sourcing by December. This development is likely to lead to increased investments, job opportunities, and capacity expansion in export-oriented sectors.
The trade deal’s impact is expected to extend beyond price competitiveness, as it will facilitate deeper integration of Indian exporters into US supply chains. By reducing reciprocal tariffs from approximately 50 percent to 18 percent, Indian exports are poised to become more competitive compared to other Asian suppliers. This shift is anticipated to result in a surge of orders and a substantial growth in exports in the near future. FIEO views this agreement as a testament to India’s commitment to fair and rule-based trade, projecting a positive outlook for the country’s export targets and global trade relations.
