Interim Trade Deal With US Brings Major Gains for This Sector
India–US Interim Trade Deal Set to Boost This Key Sector: India and the US have agreed to cut tariffs on several sectors, including industrial goods, agricultural products, gems, and aircraft parts, under an interim trade agreement announced on February 7.
Under the framework, the US will reduce reciprocal tariffs on Indian exports to 18%. Both countries have also expressed interest in negotiating a broader bilateral trade agreement with wider tariff concessions.
The interim deal is expected to open up new investment opportunities, with multiple sectors likely to benefit.
Capital goods and textiles are set to gain the most. Lieutenant Colonel Rochak Bakshi of Trunor Enterprises said sectors that had earlier struggled are now seeing renewed interest, especially exporters to the US.
The textiles sector was hit hardest by earlier US tariff hikes. Shweta Rajani of Anand Rathi Wealth said Indian textile exports to the US fell by 35–40%, forcing exporters to offer discounts of 15–25% to stay competitive.
With tariffs now lower, Indian products are expected to regain competitiveness in the US market, particularly against rivals from Vietnam and Bangladesh.
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