New Delhi: The Federation of Indian Export Organisations (FIEO) on Tuesday hailed finalisation of the India-US trade deal, under which the United States has agreed to reduce tariffs on all 'made in india' products to 18 per cent, saying it marks a significant milestone in further boosting and strengthening bilateral trade relations between the two countries. 

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.

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.

SC 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.

“The finalisation of the India–US Trade Deal and the reduction of US tariffs to 18 percent 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,” said Ralhan.

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 per cent to 18 per cent — would be a major game-changer for the competitiveness of Indian exports vis-a-vis other Asian suppliers.

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.

“This agreement sends a strong signal to global markets about India’s commitment to free, fair, and rules-based trade. FIEO remains confident that this development will help India achieve its long-term export targets and further strengthen India’s position as a reliable global trading partner,” Ralhan noted.