The Federation of Indian Export Organisations (FIEO) has wholeheartedly hailed the finalisation of the ‘Father of All Deals’, the India-US Trade Deal, under which the United States has agreed to reduce tariffs on all Indian-made products to 18%, marking a significant milestone in further boosting and strengthening bilateral trade relations between the two countries.
Terming the development as a historic milestone and game-changer for Indian exporters, Mr S. C. Ralhan, President, FIEO, said that the agreement would enhance the competitiveness of Indian products in the US market and provide a strong impetus to India’s export growth across sectors.
Mr Ralhan highlighted that sectors such as engineering goods, textiles and apparel, pharmaceuticals, chemicals, leather products, gems and jewellery, and agricultural products are expected to gain significantly from the tariff rationalisation.
“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,” he added.
The reduction in reciprocal tariffs—from earlier levels of around 50% to 18%, as indicated—would be a major game-changer for the competitiveness of Indian exports vis-à-vis other Asian suppliers. It is expected to lead to an immediate and substantial release of orders that were earlier put on hold, particularly in labour-intensive sectors such as apparel, textiles, leather and footwear, where global buyers typically lock in summer season sourcing by December. With sharper price parity, improved tariff certainty and strong buyer confidence in Indian suppliers, these sectors are poised for a rapid surge in orders and a strong acceleration in export growth in the coming months.
The FIEO President appreciated the proactive role played by the Government of India, under the able and dynamic leadership of the Prime Minister, in safeguarding exporters’ interests and engaging constructively with US counterparts to arrive at a mutually beneficial outcome, said a release.
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