India-US Trade Pact Spurs Export Advantage for Indian Manufacturers

The newly finalized India-US trade framework lowers US tariffs on Indian exports, boosting India's competitiveness against nations like China and Bangladesh. This agreement promises market-share growth for sectors such as textiles and footwear, while supporting India's plans for significant US imports, aiding both nations' economic goals.

The newly finalized trade framework between India and the United States offers immediate advantages for Indian exporters. The deal reduces reciprocal tariffs to 18 per cent, providing a competitive edge over countries like China, Indonesia, Vietnam, and Bangladesh.

Rudra Kumar Pandey from Shardul Amarchand Mangaldas & Co highlighted the operational clarity and expected market-share gains for India in key sectors such as textiles and footwear. With an 18 per cent tariff, India's position strengthens against competitors with higher tariffs.

This trade pact also supports India's strategic import plans from the US over five years, enhancing the country's digital, aviation, and infrastructure sectors. Deloitte India's Gulzar Didwania and Florence Shoe Company's Aqeel Panaruna emphasized the long-term benefits for Indian exporters, particularly in the footwear industry.

(With inputs from agencies.)