Trump's Tariff Cut Boosts 'Made in India' Exports

US President Donald Trump's decision to reduce tariffs on Indian goods from 50% to 18% is expected to boost Indian exports. Finance Minister Nirmala Sitharaman anticipates positive impacts on sectors like steel, aluminium, textiles, and agriculture. The move is part of a broader agreement including trade barrier reductions and energy purchases.

US President Donald Trump's announcement to slash tariffs on Indian goods from 50% to 18% is being hailed as a boon for 'Made in India' exports by Finance Minister Nirmala Sitharaman. The tariff reduction is anticipated to revitalize sectors such as steel, aluminium, textiles, and agricultural products, which were adversely affected by the previous higher duties.

The agreement, reached in exchange for India reducing trade barriers and ceasing Russian oil imports, aligns Indian tariffs with competitive regional economies. This adjustment is expected to restore India's price advantage in the US market, thereby boosting exports.

Trump's decision is part of a broader deal that includes India buying USD 500 billion worth of US goods such as energy and technology over the next five years. The move could significantly benefit labor-intensive sectors like apparel and jewellery, which suffered under previous high tariffs.

(With inputs from agencies.)