New Delhi, February 8: The recent trade agreement between India and the United States is expected to significantly enhance the Indian industry’s goal of surpassing $120 billion in exports by the fiscal year 2025-26.
According to the Engineering Export Promotion Council of India (EEPC), the reduction in tariffs will strengthen India’s target of achieving $250 billion in engineering exports by 2030. The council stated, “The U.S. is the largest market for engineering goods. EEPC welcomes the framework for an interim agreement between the two countries, which reduces duties and trade barriers.”
The proposed agreement is anticipated to promote local manufacturing and provide Indian exporters, particularly in the engineering sector, with greater market access in the world’s largest economy.
The agreement clarifies that the 25% tariff imposed by former President Donald Trump on India has been reduced to 18%. Additionally, tariffs on oil purchases from Russia have been lifted. India will also receive a preferential tariff rate quota for automotive parts.
This will assist the engineering export sector in regaining its competitiveness in the U.S. market. EEPC expects that MSME engineering exporters will benefit significantly from the trade deal with the U.S. The council is optimistic that duties imposed under Section 232 on steel, aluminum, and automotive components will also be reduced in the future.
The statement emphasized, “A deeper trade partnership with the U.S. is beneficial for both sides. Once the interim deal is signed and a larger agreement is established, export growth in the Indian engineering sector could see substantial increases. This will play a crucial role in achieving the $250 billion engineering export target by 2030.”
Moreover, the joint statement from the U.S. and India has bolstered confidence in the Indian engineering sector. This trade agreement is expected to help engineering exporters not only regain several old buyers but also attract new customers, leading to robust export growth in the coming months.
