Industry Welcomes Indiaus Trade Deal, Sees Positive Outlook After Tariff Cut To 18%

(MENAFN- KNN India) New Delhi, Feb 3 (KNN) Industry bodies and trade representatives have welcomed the finalisation of the India–US trade deal and the reduction of US tariffs on Indian goods to 18 per cent, calling it a significant step in strengthening bilateral economic ties and improving export prospects.

S C Ralhan, President, Federation of Indian Export Organisations (FIEO), described the agreement as a landmark achievement that reflects the growing strategic and economic partnership between India and the United States.

“Lower tariffs will not only improve price competitiveness but also help Indian exporters integrate more deeply into US supply chains. This agreement will encourage capacity expansion, attract fresh investments, and support job creation in export-oriented industries,” Ralhan added.

BJP MP and Secretary General, Confederation of All India Traders (CAIT), Praveen Khandelwal, said this agreement will significantly enhance bilateral trade, attract greater investment, and create large-scale employment opportunities, particularly for India's MSMEs.

He said sectors such as manufacturing, electronics, defence, pharmaceuticals, textiles, gems and jewellery, agri-products, renewable energy and digital services are expected to benefit from improved market access and reduced trade barriers.

Dr A Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), said the deal comes as timely relief for the apparel industry, which had been under pressure due to high US tariffs.

“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. 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.

Similarly, Confederation of Indian Textile Industry (CITI) Chairman Ashwin Chandran said the tariff reduction would help Indian textile and apparel exporters compete more effectively in the US market.

Chandran noted,“This reduction in tariff will ensure our textile and apparel exporters are once again in a position to compete effectively in the US market, the single-largest market for India's textile and apparel exports. This deal will also ensure that factories can run at full steam once more and job creation can get back to previous levels.”

(KNN Bureau)

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