The industry states that the interim US trade deal framework aligns with India’s aim to surpass $120 billion in engineering exports by FY2025‑26. The Engineering Export Promotion Council of India (EEPC) highlights that the tariff reduction supports India’s target of achieving $250 billion in engineering exports by 2030, especially with improved access to the US market being crucial. EEPC India appreciates the release of the interim deal framework between the two countries, emphasizing the reduction in duties and trade barriers.
The proposed agreement is expected to enhance local manufacturing and offer expanded market opportunities for Indian exporters, particularly in the engineering sector, in the world’s largest economy. With the US reducing tariffs on Indian goods to 18 percent and providing a preferential tariff rate quota for automotive parts, the engineering exports sector is poised to regain competitiveness in the US market. The trade deal with the US is anticipated to greatly benefit MSME engineering exporters.
EEPC India expresses hope that future developments will lead to a relaxation of duties imposed by the US on steel, aluminium, auto, and auto components under Section 232. A deeper trade partnership with the US is seen as mutually beneficial, potentially driving stronger export growth in the Indian engineering sector once an interim deal is finalized and a comprehensive agreement is reached. The joint US-India statement has instilled confidence in the Indian engineering sector, with expectations of reclaiming old buyers and attracting new customers for robust export growth.
