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US Trade Deal Fuels India's $250 Billion Engineering Export Ambition by 2030

An interim trade framework between the US and India reduces tariffs and trade barriers, directly supporting India's goal of reaching $250 billion in engineering exports by 2030. The deal, which cuts US tariffs on Indian goods to 18%, is expected to significantly benefit MSME engineering exporters and help the sector regain competitiveness. Improved market access is seen as key to winning back old buyers and securing new customers in the world's largest economy. The Engineering Export Promotion Council of India (EEPC) states that a deeper trade partnership will fuel stronger export growth and boost local manufacturing.

Key Points: US-India Trade Deal to Boost Engineering Exports to $250B by 2030

  • Tariffs cut to 18% on Indian goods
  • Aims for $250B engineering exports by 2030
  • Boosts MSME and manufacturing competitiveness
  • Provides preferential access for auto parts
  • Strengthens US-India trade partnership
2 min read

US trade deal boosts India's target of $250 billion engineering exports by 2030

An interim US-India trade deal reduces tariffs, boosting India's engineering exports. The pact targets $250 billion by 2030, aiding MSMEs and manufacturing.

"The US being the largest market for engineering goods... welcomes the release of a framework for an interim deal - EEPC India"

New Delhi, Feb 8

The interim US trade deal framework supports India's broader goal of crossing $120 billion in engineering exports in FY2025‑26, according to the industry.

Moreover, according to the Engineering Export Promotion Council of India (EEPC), the tariff reduction also strengthens India's journey toward the target of achieving $250 billion in engineering exports by 2030, "especially as better access to the US market is a key to reaching that milestone".

"The US being the largest market for engineering goods, EEPC India welcomes the release of a framework for an interim deal between the two countries, which reduces duties and trade barriers," the council said in a statement.

The proposed agreement would boost local manufacturing and provide greater market access for Indian exporters, including those in the engineering space, into the world's largest economy, it added.

The US will cut tariffs on Indian goods to 18 per cent. Additionally, India will also get a preferential tariff rate quota for automotive parts.

This is set to help the engineering exports sector regain its competitiveness in the US market. MSME engineering exporters are expected to significantly gain from the trade deal with the US, said the EEPC.

EEPC India hopes that, going forward, duties imposed by the US under Section 232 on steel, aluminium, auto, and auto components would also ease.

"A deeper trade partnership with the US bodes well for both sides. Once an interim deal is signed and a comprehensive agreement follows, the Indian engineering sector could see much stronger export growth. It will significantly contribute towards achieving the engineering exports target of $250 billion by 2030," it mentioned.

Moreover, the US-India joint statement has boosted the confidence of the Indian engineering sector.

The trade deal would not only help engineering exporters win back many old buyers but also get new customers, thus ensuring stronger export growth in the coming months.

- IANS

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Reader Comments

P
Priya S
$250 billion by 2030 is an ambitious target, but this US partnership makes it seem achievable. Hope the benefits trickle down to smaller towns and create jobs beyond the metros. The focus on MSMEs is particularly welcome.
R
Rohit P
Good step, but let's not celebrate too early. The real test is the "comprehensive agreement" they mention. We need to ensure our farmers and other sectors aren't compromised in a larger deal. Strategic patience is key.
S
Sarah B
Watching from the US, this seems like a win-win. Stronger trade ties with India are good for global supply chain diversification. Hope it leads to more collaboration in tech and green engineering too.
K
Karthik V
The mention of Section 232 duties on steel and aluminium is crucial. If those ease, it will be a massive boost for our primary metal industries. This interim deal is a promising first step. Jai Hind!
M
Meera T
While the economic benefits are clear, I hope this growth is sustainable and environmentally conscious. Let's not repeat the mistakes of rapid industrialization without planning for waste and emissions.
V
Vikram M
This is the kind of strategic partnership India needs. Reducing dependency on any single market or region. Building a strong export relationship with

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