Experts have praised the United States’ decision to lower tariffs on Indian imports and exports to 18%, citing benefits for bilateral trade and relief for the textile industry. Agricultural economist Dr. R.S. Ghuman highlighted that such high tariffs, as per the WTO framework, can hamper trade potential. The reduced tariffs are expected to enhance import and export activities between the two countries significantly.
Dr. Ghuman emphasized that this move will revitalize trade and elevate overall business operations. He also stressed the importance of ensuring the quality of traded goods in the future. Notably, dairy and specific agricultural products have been excluded from this tariff reduction, with implications for India’s rice exports, closely tied to the Minimum Support Price system.
While acknowledging the exclusion of certain products, Dr. Ghuman noted that India stands to benefit substantially from the tariff cut. The textile industry has lauded the US decision, with Selvaraj from the Southern India Mills’ Association calling it a crucial relief. He expressed gratitude towards the Prime Minister and Union Ministers for Commerce and Textiles for their efforts in negotiating the reduced 18% tariff rate.
Selvaraj highlighted that the new tariff rate positions India competitively among export nations, boosting global competitiveness. He also mentioned that recent trade pacts with the UK and Europe, coupled with supportive measures in the Union Budget 2026–27, have bolstered the industry’s confidence.
