• Source:JND
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India-US Trade Deal: The implementation of the India-US trade agreement, under which US tariffs on Indian goods have been reduced to 18 per cent from 25 per cent, is expected to deliver a significant boost to labour-intensive export sectors such as textiles, leather, and gems and jewellery.

Real Gain To Be Visible From Next April

Exporters anticipate a 20 per cent increase in shipments from these categories once the benefits fully materialise. Industry representatives say the real gains will start becoming visible from next April, as new orders at the lower tariff rate take time to materialise. With improved competitiveness in the US market, American companies are also likely to increase manufacturing investments in India.

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The US, the world's largest importer, has a manufacturing share of just 9 per cent in its GDP. Indian textiles currently enjoy exports worth 10.5 billion dollars annually to the US market.

Experts Speek

Sanjay Jain, former chairman of the Confederation of Indian Textile Industries (CITI), said the sharp reduction to 18 per cent could potentially double India's textile exports to the US in the long run. He noted that a 20 per cent increase could appear soon, as competitors like Bangladesh, Cambodia, China, and Vietnam face higher tariffs than India under the new arrangement.

Export Surge Expected To Rise By 20%

India exports 10.6 billion dollars worth of textiles to the US each year, with garments accounting for 5.5 billion dollars. A. Shakthivel, chairman of the Apparel Export Promotion Council, said while immediate growth may not occur, a 20 per cent rise is possible from April onward.

For leather and footwear, RK Jalan, former chairman of the Council for Leather Exports, said the previous 50 per cent tariff had caused a decline in exports. The reduction will not only recover lost ground but could add 15–20 per cent growth in the next three to four months. India currently exports 1.2 billion dollars worth of leather and footwear to the US annually.

In gems and jewellery, exports to the US reached 10 billion dollars in the last financial year (2024–25). However, after the 50 per cent tariff imposition last August, growth slowed, and a decline was recorded in January. The new deal is expected to drive a 10 per cent increase in this sector.

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The agreement is also seen as reviving prospects for marine products, particularly shrimp, which had suffered under the 50 per cent duty. India exports 2.4 billion dollars' worth of shrimp to the US each year. The sector had faced severe challenges, prompting government efforts to diversify markets to Russia and Europe.

Farmers To Benefit From India-US Trade Deal

Similarly, agricultural and processed items, with annual exports of 6 billion dollars to the US in the previous financial year, had begun shifting to competitors like Pakistan, Vietnam, Kenya, and Sri Lanka due to the high tariffs. Exporters now expect a rebound in these categories as well.


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