New Delhi’s business leaders are celebrating a landmark India-US trade agreement that promises to supercharge Indian exports and create jobs across key sectors. Major industry bodies like CII, PHDCCI, and AEPC hailed the deal on Tuesday, emphasizing its potential to enhance global competitiveness of Indian products.
The centerpiece of the agreement is the immediate slash in reciprocal tariffs on Indian goods from 25% to 18%, alongside the removal of an additional 25% tariff imposed on India for purchasing oil from Russia. This move is set to revitalize manufacturing, fortify supply chains, and generate fresh employment opportunities.
CII President Rajiv Memani described the tariff reduction as a ‘major and positive step’ towards deepening strategic economic ties between the two nations. ‘This deal underscores the commitment to strengthening trade, technology, and investment relations,’ he said, expressing optimism that businesses from both sides will collaborate to translate the agreement into tangible growth and sustained economic prosperity.
PHDCCI President Rajiv Juneja echoed these sentiments, noting that the tariff cuts signal America’s dedication to open trade and economic resilience. Lower tariffs will reduce production costs, strengthen supply chains, curb inflation, and benefit both companies and consumers. Sectors like manufacturing, technology, healthcare, and renewable energy stand to gain the most.
Juneja also attributed the breakthrough to the strong personal rapport between Prime Minister Narendra Modi and US President Donald Trump, which he believes will foster greater trust and stability in bilateral trade.
For the apparel industry, AEPC Chairman Dr. A. Sakthivel called the decision a ‘timely boon.’ With tariffs on Indian textiles in the US previously reaching up to 50%, the sector was under immense pressure. The US remains India’s largest export market for garments, and improved terms will spike demand, accelerate exports, attract investments, and position India as a reliable global supplier.
Dr. Sakthivel highlighted that textiles are among India’s top employment generators, safeguarding existing jobs and creating new ones, particularly for women and labor-intensive workers. As implementation unfolds, industry watchers anticipate a ripple effect across the economy, paving the way for India’s emergence as a manufacturing powerhouse.