New Delhi, Feb 3 (.) Indian industry on Tuesday welcomed the finalisation of the India–US trade deal, saying the reduction of tariffs to 18 per cent would strengthen the strategic economic partnership between the two countries and enhance the global competitiveness of Indian products.
Reacting to the agreement, Confederation of Indian Industry (CII) President Rajiv Memani said the expected tariff reduction marks an important milestone in bilateral relations.
“The expected reduction of US–India tariffs to 18 per cent marks a significant step forward in the strategic economic partnership between India and the US,” he said.
Congratulating the leadership for clinching the deal, Memani said, “CII congratulates the leadership of Hon’ble Prime Minister Shri Narendra Modi and Hon’ble Minister Shri Piyush Goyal for steering a constructive and forward-looking dialogue and clinching this deal with India’s most important trade partner.”
He added that the move would “enhance the global competitiveness of Indian products while catalysing manufacturing growth, employment creation and the development of resilient supply chains.”
Meanwhile, Secretary, Department of Economic Affairs (DEA), Anuradha Thakur said the agreement removes a major source of uncertainty and creates fresh opportunities for investment at a time of global volatility.
Speaking on the sidelines of the Federation of Indian Chambers of Commerce and Industry (FICCI) organised post-Budget conference , Thakur said India continues to demonstrate strong macroeconomic resilience.
Arvind Shrivastava, Secreatry, Department of Revenue said here in a note, “India-US trade deal will further expand and deepen trade between two of the largest economies of the World. It will create more opportunities for our labour-intensive and manufacturing sectors in the US market and give impetus to mutually-beneficial collaboration in high and advanced technology sectors.”
Welcoming the deal, the Indian Rice Exporters Federation (IREF) said the proposed tariff cut would significantly improve the competitiveness of Indian rice in the US market. The Federation said reducing tariffs to 18 per cent would restore parity with competing exporters such as Thailand and Pakistan, improving landed-price competitiveness.
The rice exporters’ body noted that Indian shipments to the US have remained resilient even during periods of sharp duty increases, underscoring sustained demand for Indian produce. According to IREF, tariff parity is expected to translate into higher volumes across both basmati and non-basmati categories, helping India defend and expand its market share in the United States.
Echoing same, Krishan Arora, Partner and India Investment Roadmap, Grant Thornton Bharat said, “What seems to be the first tranche of US-India agreement on bi-lateral trade, tariff reduction from 25 to 18 per cent is a welcome move and would provide some immediate relief for Indian exporters who were grappling with shrunk margins.
Arora applauded the efforts of Modi government in terms of cracking three major deals in succession viz. the UK, EU and now the US.
. SAS KK