New Delhi, Feb 3 (NationPress) Prominent industry associations stated on Tuesday that the India-US trade agreement will significantly boost the global competitiveness of Indian products, while also driving manufacturing expansion, job creation, and the establishment of resilient supply chains.

The US has promptly lowered the reciprocal tariff on Indian goods from 25% to 18% and has eliminated an additional 25% tariff on purchases of Russian oil from India.

“The anticipated reduction of US-India tariffs to 18% represents a crucial advancement in the strategic economic alliance between India and the US,” remarked Rajiv Memani, President of CII.

This trade agreement underscores the mutual commitment of both nations to enhance trade, technology, and investment connections in a rapidly evolving global marketplace.

“The CII is eager to continue collaborating with business stakeholders in both countries to turn this momentum into substantial results for businesses and enduring economic growth,” Memani added.

PHDCCI President Rajeev Juneja pointed out that the tariff reductions demonstrate the United States' renewed dedication to trade openness and economic efficiency.

“Lower tariffs reduce input costs for local industries, fortify supply chains, and alleviate inflation by lowering prices for both businesses and consumers. This benefits key sectors such as manufacturing, technology, healthcare, and renewable energy by enhancing access to essential goods, capital equipment, and critical components,” he stated.

Remarkably, this strategy aligns with the cooperative spirit fostered by the strong personal relationship between Prime Minister Narendra Modi and US President Donald Trump, enhancing trust and predictability in bilateral trade, Juneja emphasized.

Dr. A Sakthivel, Chairman of AEPC, noted that this breakthrough is a timely and welcome development for the Indian apparel sector, which has been pressured by the high US tariff of 50%.

“The United States is our largest export market, and improved trade conditions will greatly enhance the competitiveness of Indian apparel products in the US. This initiative is expected to significantly bolster apparel exports, attract new investments throughout the value chain, and reinforce India’s role as a reliable global sourcing hub,” he mentioned.

Crucially, as the apparel sector is one of the largest employers, this positive shift will help secure existing jobs and create substantial new employment opportunities, particularly for women and the labor force in labor-intensive areas, Sakthivel added.