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India-US "Father of All Deals" Applauded by Apparel Industry as Tariff Relief

Indian apparel exporters have hailed the new interim trade agreement with the United States as a landmark deal that will provide crucial relief from punitive tariffs. Industry leaders project that business with the American market, currently around Rs 14,000 crore, could double within three years, boosting employment and foreign exchange. Commerce Minister Piyush Goyal framed the pact as a cornerstone of a major geopolitical shift, extending beyond commerce into defence and technology. The agreement involves India reducing tariffs on US industrial and agricultural goods, while the US will impose an 18% reciprocal tariff on a range of Indian products, with plans for future reductions.

Key Points: India-US Trade Deal Hailed as Win for Apparel, Textile Exports

  • Relief from 25% US tariffs
  • Deal to double apparel exports in 3 years
  • Strategic geopolitical partnership
  • Reciprocal tariff reductions on goods
  • Safeguards for Indian farmers' interests
3 min read

Apparel industry lauds India-US interim trade agreement, call it "father of all deals"

Industry leaders laud the India-US interim trade agreement, calling it a landmark "father of all deals" that will double exports and boost employment.

"This is a big moment for the Apparel sector. We call it the father of all deals. - A Sakthivel"

Jaipur, February 9

Chairman of the Apparel Export Promotion Council, A Sakthivel, hailed the India-US interim trade agreement as a landmark moment for the Indian apparel industry, which has been struggling under US tariffs.

Speaking to ANI on Sunday, he noted that the sector had been facing significant challenges over the past six months due to 25% US tariffs, which had caused considerable turmoil among exporters.

"This is a big moment for the Apparel sector. We call it the father of all deals. We have been in turmoil for the past six months due to 25% penalties. The moment a saturation point was reached, this deal was announced. This is a win-win situation for both countries. This deal took time because our government wanted to safeguard the interests of our citizens, especially farmers," A Sakthivel said.

KM Subramanian, President of the Tirupur Exporters Association, echoed the sentiment and expressed his enthusiasm for the "historic deal."

"We are very happy with this historic deal. We do around Rs 14,000 crores in business with the American market. This will get doubled within three years. This deal will also increase employment and foreign exchange," he told ANI.

Earlier on Sunday, Union Minister of Commerce and Industry Piyush Goyal emphasised that the interim trade agreement between India and the US is not merely a commercial pact but a cornerstone of a major geopolitical shift.

Speaking exclusively to ANI, Goyal said the agreement reflects the broader depth of the India-US partnership, which spans defence, technology, critical minerals and strategic cooperation. Goyal emphasised that while trade is the vehicle, strategic alignment is the destination. The deal is designed to "cement" a partnership that is already flourishing across several high-stakes domains.

The United States and India announced a framework for an Interim Agreement on reciprocal, mutually beneficial trade, reaffirming their commitment to a broader Bilateral Trade Agreement (BTA) launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.

As part of the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US agricultural and food products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

On the other hand, the United States will impose a reciprocal tariff of 18 per cent on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and certain machinery. Subject to the successful conclusion of the Interim Agreement, the US has said it will later remove reciprocal tariffs on select items, including generic pharmaceuticals, gems and diamonds, and aircraft parts.

- ANI

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Reader Comments

S
Sarah B
As someone who follows trade, the strategic angle Minister Goyal mentioned is key. This isn't just about apparel; it's about India's position in the global order. Aligning with the US on tech and minerals is a bigger game.
P
Priya S
Happy for the exporters, but a bit worried. We are opening our markets to US agriculture. Hope our farmers are truly protected. The deal sounds good, but the devil is always in the details. Let's see the fine print.
K
Karthik V
"Father of all deals" is quite a statement! If this brings the promised foreign exchange and employment, it will be a massive boost for our economy. The 18% reciprocal tariff from the US seems manageable compared to the previous 25% penalty.
M
Michael C
Interesting to see the phased approach. The US removing tariffs later on pharma and aircraft parts is a smart concession. This looks like a carefully negotiated interim step, not a rushed agreement. Good diplomacy.
R
Rohit P
Bhagwan ka shukar hai! My small garment unit in Jaipur was really suffering. This deal is like a lifeline. Hope the benefits reach the small and medium exporters quickly and not just the big players.

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