New Delhi, Feb 3 (NationPress) Prominent industry associations stated on Tuesday that the India-US trade agreement is set to significantly improve the global competitiveness of Indian products, while also fostering growth in manufacturing, job creation, and the establishment of resilient supply chains.

The US has promptly reduced its reciprocal tariffs on Indian goods from 25% to 18%, and has eliminated an additional 25% tariffs previously imposed on India for acquiring Russian oil.

“The anticipated reduction of tariffs to 18% is a notable advancement in the strategic economic partnership between India and the US,” commented Rajiv Memani, President of the CII.

This trade agreement emphasizes the mutual commitment of both nations to strengthen their trade, technology, and investment connections in a highly competitive global environment.

“CII looks forward to engaging with business leaders in both countries to convert this momentum into concrete results for enterprises and sustained economic progress,” Memani remarked.

PHDCCI President Rajeev Juneja noted that the US's decision to lower tariff duties is indicative of a renewed dedication to trade openness and economic efficiency.

“The reduction of tariffs decreases input costs for domestic industries, fortifies supply chains, and alleviates inflation by lowering expenses for businesses and consumers. Key sectors—including manufacturing, technology, healthcare, and renewable energy—will benefit from improved access to essential goods, capital equipment, and critical components,” he stated.

This strategy aligns with the spirit of collaboration fostered by the strong personal relationship between Prime Minister Narendra Modi and US President Donald Trump, enhancing trust and stability in bilateral trade, added Juneja.

Dr. A Sakthivel, Chairman of the AEPC, expressed that this breakthrough is a timely and welcome development for the Indian apparel sector, which has faced challenges due to the previously high US tariff of 50%.

“The US remains our largest export market, and improved trade conditions will greatly enhance the competitiveness of Indian apparel in the US market. This change is expected to significantly boost apparel exports, attract new investments throughout the value chain, and solidify India’s role as a dependable global sourcing hub,” he stated.

Significantly, as the apparel sector is one of the largest job creators, this favorable shift is likely to secure current jobs and generate substantial new employment opportunities, especially for women and workers in labor-intensive industries, emphasized Sakthivel.