India's $150M Glass Bottle Exports to US Set to Resume After Trade Deal

"There is a very large requirement for very high-quality pure glass bottles used by perfumers. So colognes, perfumes, and similar products require high-quality bottles, which are made in India. India is a leading manufacturer of high-quality perfume bottles. This sort of trade had stopped; it had halted because of the absence of a trade agreement," he noted

Discussing the competitive advantage this provides, Kheruka said, "I can see that this is going to resume with great vigor and with perhaps now--it remains to be seen its early days--if we have 18% tariff and let's say other competing countries have a higher tariff, then this could possibly mean that their volumes might also come to India which would be a very good thing for our country."

In an exclusive interview with ANI, Kheruka noted that while India is already a global leader in this niche, trade had previously stalled due to the lack of a formal agreement. He characterised the deal as a "historic agreement" and credited the diplomatic efforts of President Trump and Prime Minister Narendra Modi for resolving long-standing issues between the two nations.

The economic impact of this trade resumption is expected to be significant, with Kheruka noting that, prior to the trade halt, glass exports to the United States accounted for a substantial share of the industry's portfolio.

"Well, the figure that I have readily is the figure of exports to the United States, which was well over a hundred million dollars, maybe 150 million dollars. And so therefore, this is a business that will definitely resume, which would be a very good thing," Kheruka stated. He noted that there is a demand in the US for almost everything manufactured by India's large glass industry, and the potential for growth remains "very large."

Beyond the relationship with the US, Kheruka also discussed the strategic importance of the trade agreement with the European Union. He noted that Europe is currently facing a shortage of skilled labour, which presents a unique opportunity for Indian manufacturing.

According to Kheruka, the agreement could prompt European companies to relocate production to India to maintain brand quality while reducing costs.

Kheruka remarked, "If they start manufacturing in India, they would be able to continue to sell products carrying their brand at a much more competitive price as compared to the prices which were prevailing when they were exporting the same products from Europe."

He further stated that this manufacturing shift is expected to benefit both the engineering and glass sectors by creating a steady stream of exports to the European bloc.

While Kheruka noted that the industry will need time to identify the specific lines of trade that offer the most competitive advantage, he expressed strong confidence in the path ahead.

Reflecting on the broader impact of these international partnerships, Kheruka concluded, "I think the stars look good for business for India with its large developed country trading partners."

- ANI