Indian Exports Get Major Boost from India-US Trade Deal
Indian exports are expected to witness an exponential rise following the India-US trade deal, after former US President Donald Trump claimed that tariffs on Indian goods have been slashed sharply. The move has been welcomed by top exporters and industry bodies, who believe the decision will bring immediate relief to labour-intensive sectors and strengthen India’s position in the US market.
According to exporters, the reduction of the so-called ‘Trump Tariffs’ from 50% to 18%, effective immediately, could be a game-changer for several key industries that were under pressure due to high duties and global slowdown.
US Remains India’s Largest Trading Partner
Highlighting the importance of the development, Confederation of Indian Industry (CII) President Rajiv Memani told ANI that the United States is not only the world’s largest economy but also India’s biggest trading partner.
“Total Indian exports to the US are estimated at around $80–90 billion annually,” Memani said.
This strong trade relationship makes any tariff relief from the US especially significant for Indian exporters looking to expand volumes and improve competitiveness.
Labour-Intensive Sectors to Gain the Most
Breaking down the export numbers, Memani explained that nearly 50–60% of India’s exports to the US—roughly $50 billion—come from labour-intensive sectors such as:
Textiles and garments
Leather and footwear
Fisheries
Gems and jewellery
Auto components
Engineering goods
He added that the tariff relief opens up an export opportunity worth nearly $50 billion (around ₹4.50 lakh crore), particularly for sectors that have faced challenges in recent months.
Ratings Agencies and Industry Echo Optimism
Global ratings agency Moody’s also termed the tariff reduction credit-positive for Indian exports, especially for gems, jewellery, textiles and apparel—India’s top export segments.
Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry (CITI), called the finalisation of the India-US trade deal a “major relief” for the textile and apparel industry.
Legal and trade experts agree. Rudra Kumar Pandey, Partner at Shardul Amarchand Mangaldas & Co., told PTI that sectors such as textiles, gems and jewellery, leather, engineering goods and auto components will benefit disproportionately, as they directly compete with Vietnam and Bangladesh in the US market.
Meanwhile, Sanjay Agarwal, Managing Director of Century Plyboards India Ltd, noted that the new trade dynamics could also help pharma, engineering and auto ancillary sectors.
India’s GDP Outlook Improves
The positive sentiment has spilled over into economic forecasts. Global investment banks have raised India’s GDP growth projections following the tariff cut announcement. Goldman Sachs, according to ANI, revised its CY26 real GDP growth forecast upward by 20 basis points to 6.9% year-on-year.
Key Exemptions Still in Place
It is also noteworthy that sectors like pharmaceuticals and consumer electronics were already exempted from Trump Tariffs, further supporting Indian exports in high-value categories.
Why This Matters Now
At a time of global trade uncertainty, the India-US trade deal offers timely relief. With lower tariffs, Indian exporters are better placed to scale up shipments, protect jobs in labour-intensive sectors, and contribute to faster economic growth—making this development crucial for India’s export-led growth strategy.
