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India-US Trade Deal Cuts Tariffs to 18%, Boosts Exports and Jobs

Leading industry chambers have welcomed the India-US trade deal, which sees the US immediately reducing reciprocal tariffs on Indian goods from 25% to 18%. The deal is expected to enhance the global competitiveness of Indian products, particularly in key sectors like apparel, manufacturing, and renewable energy. Industry leaders state it will catalyze manufacturing growth, attract investments, and develop resilient supply chains. Importantly, the apparel sector, a major employment generator, is projected to secure existing jobs and create substantial new opportunities.

Key Points: India-US Trade Deal: Tariffs Cut to 18%, Boosts Jobs & Exports

  • US cuts tariffs on Indian goods from 25% to 18%
  • Deal to boost manufacturing and apparel exports
  • Expected to create jobs, especially for women
  • Strengthens India-US strategic economic partnership
2 min read

US trade deal to boost global competitiveness of Indian products, create jobs: Industry chambers

US reduces tariffs on Indian goods to 18%, boosting manufacturing, apparel exports, and job creation. Industry hails strengthened trade partnership.

"The expected reduction of US-India tariffs to 18 per cent marks a significant step forward - Rajiv Memani, CII"

New Delhi, Feb 3

Leading industry chambers on Tuesday said the India-US trade deal will enhance the global competitiveness of Indian products while catalysing manufacturing growth, employment creation and the development of resilient supply chains.

The US has immediately reduced reciprocal tariff on Indian goods from 25 per cent to 18 per cent, while waiving off the other 25 per cent tariffs imposed on the country for purchasing Russian oil.

"The expected reduction of US-India tariffs to 18 per cent marks a significant step forward in the strategic economic partnership between India and US," said Rajiv Memani, President, CII.

The India-US trade deal underscores the shared commitment of both the countries to deepen trade, technology and investment ties in an increasingly competitive global landscape.

"The CII looks forward to continued engagement with business stakeholders in both countries to translate this momentum into tangible outcomes for businesses and sustained economic growth," Memani noted.

PHDCCI President Rajeev Juneja said that by lowering tariff duties, the United States signals a renewed commitment to trade openness and economic efficiency.

"Reduced tariffs cut input costs for domestic industries, strengthen supply chains, and ease inflation by lowering prices for businesses and consumers. They benefit key sectors - including manufacturing, technology, healthcare, and renewable energy - by improving access to intermediate goods, capital equipment, and critical components," he mentioned in a statement.

Importantly, this approach aligns with the spirit of cooperation fostered by the strong personal rapport between Prime Minister Narendra Modi and US President Donald Trump, reinforcing trust and predictability in bilateral trade, said Juneja.

Dr A Sakthivel, Chairman, AEPC, said that the breakthrough is a highly welcome and timely development for the Indian apparel industry, which was stressed due to the high US tariff of 50 per cent.

"The United States is our single largest export market and improved trade terms will significantly enhance the competitiveness of Indian apparel products in the US market. This development is expected to give a strong boost to apparel exports, attract fresh investments across the value chain, and reinforce India's position as a reliable global sourcing hub," he said in a statement.

Most importantly, the apparel sector being one of the largest employment generators, this positive move will help secure existing jobs and create substantial new employment opportunities, particularly for women and the workforce in labor-intensive segments, Sakthivel added.

- IANS

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Reader Comments

S
Sarah B
As someone working in the apparel export sector in Tiruppur, this is a huge relief. The 50% tariff was killing us. Hoping this translates to more orders and job security for our workers soon.
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Rohit P
Good step, but let's see the fine print. The US rarely gives concessions without expecting something big in return. Hope our negotiators protected our interests, especially in agriculture and digital trade.
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Priya S
The focus on renewable energy and tech sectors is key. This deal should help us access better components and machinery at lower cost, boosting our green energy transition. Positive move for the long term.
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Michael C
Strengthening ties with the US is strategically vital, especially with China's growing influence. A stable trade relationship creates predictability for businesses on both sides. Win-win.
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Nisha Z
Hope the benefits reach the MSMEs and small factories, not just the big corporates. The apparel sector employs so many women in rural areas. This could be a game-changer for them if implemented well.

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