In a significant win for India’s export-driven economy, the United States has slashed tariffs on Indian goods from 25% to 18%, positioning the country’s MSMEs and manufacturing sectors for substantial growth. BJP leader Gaurav Vallabh hailed this development as a landmark achievement, crediting Prime Minister Narendra Modi and former US President Donald Trump for their pivotal roles.
Speaking exclusively to reporters in Udaipur, Vallabh emphasized how this tariff reduction opens doors for key industries like textiles, leather, gems and jewelry, heavy engineering, and chemicals. ‘This is a game-changer for our small and medium enterprises battling global competition,’ he stated, underscoring the direct benefits these sectors stand to gain from easier access to the lucrative American market.
Vallabh pointed out that Trump’s acknowledgment of his personal rapport with Modi has translated into tangible economic gains. ‘As an Indian, I’m grateful to both leaders for navigating this deal masterfully,’ he added. Notably, India’s new 18% tariff rate is the lowest among major competitors, excluding close US allies like Europe, Japan, and South Korea.
For instance, in textiles, where India competes with Bangladesh, the latter faces higher duties. Similarly, in leather products and handicrafts, rivals like Vietnam and Thailand are slapped with 20-21% tariffs, giving Indian exporters a clear edge. This strategic favoritism signals America’s prioritization of India, making the US market more accessible than ever for Indian products.
As bilateral trade ties strengthen, this move not only bolsters India’s manufacturing revival but also sets a precedent for future negotiations. Experts predict a surge in exports, potentially adding billions to the economy and creating jobs across the MSME landscape. The deal exemplifies how diplomatic chemistry can fuel economic momentum, promising a brighter future for India’s industrial backbone.