Foreign affairs expert Dr. Shailendra K. Deolankar views the India-US trade agreement as a significant win for New Delhi. He highlights the removal of steep American tariffs, which is expected to benefit labor-intensive export sectors and enhance India’s global trade position. Dr. Deolankar mentions that the US had imposed tariffs in 2025, targeting certain Indian goods due to oil purchases from Russia. However, these tariffs have now been unilaterally withdrawn by the US.
The agreement is projected to particularly benefit sectors like auto parts, gems and jewelry, garments, agriculture, fisheries, and dairy products. Dr. Deolankar underscores the importance of these sectors, which heavily rely on Micro, Small, and Medium Enterprises (MSMEs) and are labor-intensive. He notes that goods worth nearly $32 billion, previously facing 50% tariffs in the American market, are now expected to regain competitiveness. This tariff removal is anticipated to boost India’s export competitiveness, especially in segments like textiles and home furnishings.
Dr. Deolankar emphasizes that the resurgence of these exports will enable India to re-enter the vast American consumer market, providing a significant impetus to employment-driven industries. In the broader trade context, he mentions that India’s total goods and services exports in 2025 amounted to about $900 billion, with exports to the US constituting around $76 billion. The earlier tariff measures had led to an estimated loss of $6–7 billion for India, impacting sectors such as auto components, gems and jewelry, and garments and leather.
The new trade agreement is expected to offset these losses while creating new avenues for Indian exporters. Experts believe that this deal signifies a substantial advancement in strengthening India’s economic ties with the US, safeguarding domestic manufacturing, and supporting employment-driven industries.
