US trade deal to strengthen Indian products globally, create jobs: Chambers

New Delhi, Feb 3: Leading industry chambers on Tuesday said the India-US trade deal will enhance the global competitiveness of Indian products while catalysing manufacturing growth, employment creation and the development of resilient supply chains.

The US has immediately reduced reciprocal tariff on Indian goods from 25 per cent to 18 per cent, while waiving off the other 25 per cent tariffs imposed on the country for purchasing Russian oil.

“The expected reduction of US-India tariffs to 18 per cent marks a significant step forward in the strategic economic partnership between India and US,” said Rajiv Memani, President, CII.

The India-US trade deal underscores the shared commitment of both the countries to deepen trade, technology and investment ties in an increasingly competitive global landscape.

“The CII looks forward to continued engagement with business stakeholders in both countries to translate this momentum into tangible outcomes for businesses and sustained economic growth,” Memani noted.

PHDCCI President Rajeev Juneja said that by lowering tariff duties, the United States signals a renewed commitment to trade openness and economic efficiency.

“Reduced tariffs cut input costs for domestic industries, strengthen supply chains, and ease inflation by lowering prices for businesses and consumers. They benefit key sectors — including manufacturing, technology, healthcare, and renewable energy — by improving access to intermediate goods, capital equipment, and critical components,” he mentioned in a statement.

Importantly, this approach aligns with the spirit of cooperation fostered by the strong personal rapport between Prime Minister Narendra Modi and US President Donald Trump, reinforcing trust and predictability in bilateral trade, said Juneja.

Dr A Sakthivel, Chairman, AEPC, said that the breakthrough is a highly welcome and timely development for the Indian apparel industry, which was stressed due to the high US tariff of 50 per cent.

“The United States is our single largest export market and improved trade terms will significantly enhance the competitiveness of Indian apparel products in the US market. 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,” he said in a statement.

Most importantly, the apparel sector being one of the largest employment generators, 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.

--IANS