India-US Trade Deal: Many export oriented sectors are going to benefit greatly from the Interim Trade Deal between India and America. Under this agreement, the tariff on Indian products in the American market has been reduced from 50 percent to 18 percent, while the tariff on some products has been reduced to zero. This has made it easier for Indian companies, especially the MSME sector, to access the $30 trillion American market.

Textile and Apparel Sector
Textile and apparel sector is among the biggest beneficiaries of this deal. Due to low tariff, Indian textiles and garments will become cheaper and competitive in the American market. This can help in increasing orders, improving profits and regaining the market lost to Asian competitors.

Leather and Footwear Sector
The leather and footwear sector has also got a big relief. With the reduction in tariffs, Indian leather and shoes will be available to American buyers at more attractive prices. This will especially benefit those MSME clusters, where employment and growth are largely dependent on exports.

Gems and Jewelery Sector
Gems and jewelery sector is going to get immediate benefits. Tariff on diamonds and gems has been reduced to zero. America is a big buyer of Indian polished diamonds and jewellery. Duty free access will increase exports, reduce costs and strengthen India’s position as a global jewelery hub.

Generic Pharmaceuticals Sector
This agreement is also very important for generic pharmaceuticals. Along with zero tariff on many generic medicines, clarity has been given regarding regulatory hurdles. This will strengthen Indian pharmaceutical companies in the American market at both price and supply levels.

Aircraft Parts Sector
The aircraft parts sector has also got a big boost. Exemption under Section 232 has been given in the agreement, which has made zero tariff and quota based access possible on aircraft parts. This will promote aerospace manufacturing and high-skilled jobs in India under ‘Make in India’.

This interim trade deal reduces not only tariff but also non-tariff barriers. At the same time, it opens the way for expanding exports and industrial sectors while protecting sensitive sectors like agriculture and dairy. This deal has brought new opportunities for investors and businessmen in many sectors.