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The Federation of Indian Export Organisations (FIEO) said the sharp tariff reduction is likely to provide an instant boost to sectors such as apparel, textiles, leather and footwear, where global buyers typically finalise summer-season sourcing by December. With improved price parity, greater tariff certainty and renewed buyer confidence, exporters expect a rapid pick-up in orders over the coming months.<\/p>\n
India’s exporters have welcomed the India\u2013US trade deal, which cuts US tariffs on Indian goods from around 50 per cent to 18 per cent, saying it will immediately unlock stalled orders.
\nIndustry bodies expect a rapid rebound in textile and apparel exports, improved competitiveness in the US market, renewed buyer confidence, fresh investments, and stronger job creation across labour-intensive sectors.<\/p>\n
Hailing the agreement as the \u2018Father of All Deals\u2019, S C Ralhan, president, FIEO<\/em><\/strong>, said the trade pact marks a major step forward in strengthening bilateral economic ties. \u201cThe finalisation of the India\u2013US Trade Deal and the reduction of US tariffs to 18 per cent on Indian-made products is a landmark achievement. It reflects the growing strategic and economic partnership between India and the United States and opens up vast opportunities for Indian exporters, particularly MSMEs,\u201d he said.<\/p>\n Ralhan added that sectors including engineering goods, textiles and apparel, pharmaceuticals, chemicals, leather products, gems and jewellery, and agricultural products are expected to gain significantly. \u201cLower tariffs will enhance price competitiveness and help Indian exporters integrate more deeply into US supply chains. This will encourage capacity expansion, attract fresh investments and support job creation in export-oriented industries,\u201d he noted.<\/p>\n The Southern India Mills\u2019 Association (SIMA) said the rollback of the punitive US tariff has come as a major relief for India\u2019s textile and clothing industry. SIMA noted that the sudden imposition of a 50 per cent tariff had severely disrupted the manufacturing value chain. SIMA chairman Durai Palanisamy<\/em><\/strong>\u00a0said, \u201cThe reduction of the US tariff to 18 per cent, the lowest rate secured by any competing textile and clothing exporting nation, has restored confidence across the industry and is expected to improve India\u2019s global competitiveness.\u201d He added that the move, combined with India\u2019s recent trade agreements with the US, the UK and Europe, is likely to revive export momentum and place the sector back on a sustainable growth path.<\/p>\n He said exporters, particularly in Tamil Nadu, were hit hard, with production levels falling by 30\u201370 per cent across several units and significant job losses following the tariff hike.<\/p>\n Anant Goenka, president, the Federation of Indian Chambers of Commerce & Industry (FICCI)<\/em><\/strong>, said the agreement marks a significant reset in bilateral economic ties. \u201cThe reduction of reciprocal tariffs on Indian goods to 18 per cent, following months of negotiations, will materially improve the competitiveness of Indian exports in the world\u2019s largest import market,\u201d he said.<\/p>\n Goenka noted that sectors such as apparel, leather, gems and jewellery, and marine products are poised to benefit from the deal, which could strengthen business confidence and deepen economic engagement between the two countries. \u201cIf implemented effectively, the agreement can provide a meaningful boost to India\u2019s export growth trajectory, broaden market access, and underscore the strategic importance of sustained cooperation between the world\u2019s largest democracies,\u201d he added.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (KUL)<\/p>\n
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