NewKerala.com

India-US Trade Deal Boosts Exports, Makes Industries Globally Competitive

State-level industry bodies across India have welcomed the new India-US trade deal, calling it a landmark achievement that will significantly boost exports. The agreement provides substantial tariff relief, with India receiving a preferred rate of 18%, improving competitiveness against countries like China and Vietnam. Key export sectors like aquaculture from Andhra Pradesh and engineering from Coimbatore, which were severely impacted by previous high tariffs, are expected to revive and gain greater US market access. Industry leaders credit the agreement for strengthening India's global trade position and enhancing economic ties with the United States.

Key Points: India-US Trade Deal: Industry Bodies Hail Global Competitiveness

  • Tariff relief for key export sectors
  • Boost to $130B bilateral trade
  • Preferential 18% tariff for India
  • Revive shrimp, textiles, engineering exports
  • Strengthen India's global trade position
2 min read

"Will make industries more globally competitive": State industry bodies on India-US trade deal

State industry bodies welcome India-US trade pact, citing tariff relief for shrimp, textiles, and engineering exports, boosting global competitiveness.

"The agreement will make our industries far more globally competitive - Rajesh B. Lund, Coimbatore Chamber"

New Delhi, February 3

State-level industry bodies across India have welcomed the India-US trade deal, calling it a significant boost for exports and saying it will make our industries far more globally competitive.

Potluri Bhaskar Rao, President of the Andhra Pradesh Chamber of Commerce, described the agreement as "wonderful news for the Indian economy," highlighting the United States' status as one of India's top three trade partners, alongside China and the UAE.

He noted that India already has trade agreements with the UAE and the European Union, and the latest pact with the US further strengthens the country's global trade position.

"Nearly USD 130 billion in bilateral trade takes place between India and the USA. Due to 50% tariffs, India was at a disadvantage for the last 8-9 months, severely impacting several sectors," Rao said.

He pointed out that Andhra Pradesh, a major exporter of aqua products, was particularly affected. "Shrimp exports worth nearly Rs 20,000 crore originate from Andhra Pradesh, with about 80% going to the US market. The high tariffs had a huge impact."

According to Rao, other sectors, such as rice, agro commodities, textiles, electronics, mobile manufacturing, pharmaceuticals, and biotechnology, also faced challenges.

"The new agreement provides substantial relief, especially as India has now been given a preferred tariff treatment of 18%, compared to 20% for countries like Pakistan, Bangladesh and Vietnam, and 34% for China," he said.

Echoing similar sentiments, Rajesh B. Lund, President of the Chamber of Commerce, Coimbatore, said the industry has "warmly welcomed" the US tariff reductions announced under the new trade initiative.

"This is a landmark achievement, and we wholeheartedly appreciate the leadership of Prime Minister Narendra Modi, whose efforts have opened major opportunities for Indian industry," Lund said. He emphasised that Coimbatore's strong base in engineering, textiles and manufacturing is expected to gain greater access to the US market.

"The agreement will make our industries far more globally competitive and give a significant boost to the regional economy," he added.

Industry bodies believe the agreement will enhance India's export competitiveness, revive affected sectors, and strengthen economic ties between India and the United States.

- ANI

Share this article:

Reader Comments

P
Priya S
Great step forward. My only concern is that the benefits should reach the small and medium enterprises (SMEs) and not just the big corporates. The government must ensure a level playing field for all.
R
Rohit P
Finally some relief for our shrimp farmers in Andhra! The last few months have been very tough. This deal should stabilize prices and bring back lost business. Hope the implementation is swift.
M
Michael C
Working in the pharmaceutical sector in Hyderabad, this is very promising. Easier access to the US market can accelerate growth and innovation here. A win for 'Make in India'.
S
Sarah B
While the competitive advantage is clear, we must also focus on quality and sustainability standards. Global competitiveness isn't just about price, it's about meeting international benchmarks in production.
K
Karthik V
Coimbatore's engineering units are celebrating! This is the boost we needed post-pandemic. More exports mean more jobs locally. A strong strategic move for the economy.

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

Leave a Comment

Minimum 50 characters 0/50