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Gujarat Traders Cheer India-US Trade Deal, Predict 150% Sales Surge

Textile and jewellery traders in Gujarat have enthusiastically welcomed a new India-US trade deal that reduces tariffs. They predict the 18% tariff rate will cause their sales to increase by 100-150%, potentially doubling or tripling textile exports. Industry leaders credit the deal to strategic agreements with other nations, like the EU, which pressured the US. The agreement also removed an additional punitive levy linked to India's purchase of Russian oil, easing trade tensions.

Key Points: India-US Trade Deal Cuts Tariffs, Gujarat Textile & Jewellery Traders Rejoice

  • US tariffs on India cut to 18% from 25%
  • Deal follows India-EU trade agreement
  • Textile exports predicted to double or triple
  • Jewellery sector seeks zero tariffs
  • Punitive levy on Russian oil purchases removed
3 min read

"Magic of Modi government": Textile and Jewellery traders rejoice in Gujarat as India seals trade deal with US

Gujarat's textile and jewellery exporters hail Modi-Trump trade deal, predicting a 100-150% sales boost as US tariffs drop to 18%, reviving exports.

"I believe this is the magic of PM Modi's government. - Ashok Jirawala"

Surat, February 3

Textiles and Jewellery traders have welcomed the India-US trade deal, expressing enthusiasm over reduced tariffs and predicting that an 18 per cent tariff will increase sales by 100-150 per cent.

Hailing PM Modi for the trade deal, traders believed that Free Trade Agreements with other countries, especially with the European Union, "scared" the Trump administration into making the deal.

Speaking with ANI, All Gujarat Textile Federation President, Ashok Jirawala, said, "I believe this is the magic of PM Modi's government. I believe Trump's government has got scared of losing the market because of all the deals we have closed with other countries. I believe more tariffs will be reduced in the upcoming days. The US is our biggest market in the garment industry, curtains, bedsheets and special fabrics. Their consumers were also demanding this.

Ranganath Sharda, Secretary, Ashoka Market, a Textile and Garment Exporter, believes that, as India's tariffs are lower than those of China, Pakistan, and Bangladesh, Indian traders will benefit greatly from this arrangement.

"This is a big decision. Our exports have somehow halted, but now we believe that due to 18 per cent tariffs, our exports will double or triple. We export Rs25,000 crores that will surely now go to 50,000 crores to 75,000 crores.

"Now the US tariffs on India have become the lowest as compared to China, Bangladesh, and Pakistan. I think this is largely due to the India-EU trade deal. I think this will benefit the textile business a lot. If Pakistan and China tariffs remain high, it will benefit India's exporters. We believe our sales will increase from 100 per cent to 150 per cent," Ranganath Sharda added.

Gujarat State President of the Indian Bullion and Jewellers Association, Nainesh Pachigar, also expressed enthusiasm about the reduction in tariffs and believes they will soon come down to zero.

"Our whole industry welcomes this trade deal. America has to bow down. Now they called our PM and agreed to reduce tariffs. Our industry will benefit from this reduction to 18 per cent of tariffs. We want the tariff to be zero per cent. Our export was at 35 per cent with the US, but that stopped due to tariffs; now it will start again. If tariffs come to zero, the export will be at 35 per cent again," he said.

The India-US trade deal was agreed upon on 2ND February after successful talks between the leadership of both countries. Following the announcement by US President Donald Trump and Prime Minister Narendra Modi on February 2, the reciprocal tariff imposed by the US on India was reduced to 18 per cent from 25 per cen

In addition, the US removed the additional 25 per cent punitive levy that had been linked to India's purchase of Russian oil. The move is expected to ease trade pressures and improve the overall business environment between the two countries.

The announcement has been seen as a positive step by industry leaders, with expectations that the agreement will boost investor confidence, enhance manufacturing cooperation, and further strengthen India-US economic relations.

- ANI

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Reader Comments

S
Sarah B
While this deal is positive, I hope the benefits actually reach the small and medium traders and artisans, not just the big associations. Sometimes these announcements sound great but the ground reality is different. Let's see the actual export numbers in six months.
V
Vikram M
Jai Ho! This is strategic diplomacy at its best. The EU deal pressured the US to come to the table. Our negotiators have done a good job. This will make Indian textiles and jewellery much more competitive compared to China and Bangladesh. A big win for 'Make in India'.
P
Priya S
As someone from a family in the jewellery business in Mumbai, this is a huge relief. The punitive tariffs linked to Russian oil were hurting us badly. Hope this stability continues and we can plan for the long term now. 🙏
R
Rohit P
Good step, but the article reads like a government press release. It only has voices from industry bodies who are always praising. Would like to hear from a smaller, independent trader about the challenges they still face with compliance and quality standards for the US market.
K
Kavya N
This is excellent! My uncle has a textile unit in Surat. He was very worried about the high tariffs. This news has brought a lot of positivity. If sales increase as predicted, it will be a game-changer for many families dependent on this industry.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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