Indian Goods Gain Advantage in US Market Amid Tariff Cuts

Commerce and Industry Minister Piyush Goyal announced that Indian goods will benefit from lower tariffs in the US compared to competitors like China. The new bilateral trade agreement set to reduce India's tariffs to 18% will boost sectors such as textiles, leather, and agriculture.

Commerce and Industry Minister Piyush Goyal has revealed promising developments for Indian goods entering the US market. Speaking on Sunday, he noted that India is positioned advantageously against competitors following a mutual agreement to reduce reciprocal tariffs to 18%, offering Indian products a significant cost edge.

The trade agreement, awaiting finalization by mid-March, sets India's reciprocal tariffs among the lowest globally. Competing nations face higher levies, with China's tariffs at 35% and other ASEAN nations at around 19% to 40%. Consequently, India's labor-intensive sectors like textiles, leather, and handicrafts are poised to thrive in the US with pricing advantages.

Addressing criticisms on the 18% tariff decision, Goyal asserted that concerns are unfounded. He stressed the move's long-term benefits, especially for India's agriculture and fishing exports, which he claims will spur economic growth and increase farmer incomes significantly.