India-US Trade Breakthrough Spurs Economic Optimism

The recent trade agreement between India and the US, which includes reducing tariffs on Indian goods, is set to boost the labour-intensive and MSME sectors. This move aims to enhance competitiveness in the US market, create jobs, and strengthen India's position as a reliable sourcing hub.

The trade pact between India and the United States, announcing a significant tariff cut to 18% on Indian goods, is set to invigorate India's labour-intensive sectors. Experts express optimism about its potential to boost the MSME sector and enhance price competitiveness in the American market.

A Sakthivel, Chairman of the Apparel Export Promotion Council, hailed the agreement as a timely relief for Indian exporters facing high tariffs, emphasizing the potential for increased apparel exports and investment. This development promises to bolster one of India's prominent employment sectors, notably enhancing job opportunities for women.

Trade experts underscore the strategic realignment, with sectors like textiles, gems, leather, and engineering poised to benefit as the US recalibrates its supply chains from China. Industry figures expect a surge in orders and highlight India's strategic economic positioning amid the changing global trade dynamics.

(With inputs from agencies.)