3 months ago
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Industry bodies and leaders successful some India and the U.S., and crossed sectors, person welcomed the announcement of a deal betwixt India and the U.S. nether which tariffs connected India are acceptable to beryllium slashed from the existent 50% to 18%.
India-U.S. commercialized deal updates connected February 3, 2026
U.S. President Donald Trump took to the societal media web Truth Social precocious Monday nighttime (February 2, 2026) to denote that helium had spoken connected the telephone to his “greatest friend” Prime Minister Narendra Modi and that they had agreed to a woody to trim India’s tariffs.
While Mr. Trump’s station besides specified assorted different commitments made by India, Mr. Modi’s station connected X regarding the telephone lone confirmed the work reduction, without either confirming oregon denying the different aspects.
Resumption of orders to India expected
“The simplification successful reciprocal tariffs — from earlier levels of astir 50% to 18%, arsenic indicated — would beryllium a large game-changer for the competitiveness of Indian exports vis-à-vis different Asian suppliers,” S.C. Ralhan, President of the Federation of Indian Export Organisations (FIEO), said.
In a important alleviation for respective labour-intensive sectors affected by the 50% tariffs by the U.S., Mr. Ralhan said the newly-announced work reductions are expected to pb to an “immediate and substantial” merchandise of orders that were earlier enactment connected hold, peculiarly successful sectors specified arsenic apparel, textiles, leather and footwear, wherever planetary buyers typically fastener successful summertime play sourcing by December.
Confederation of Indian Industry (CII) President Rajiv Memani, too, said that the woody would “enhance the planetary competitiveness of Indian products portion catalysing manufacturing growth, employment creation, and the improvement of resilient proviso chains”.
The woody was besides welcomed by manufacture bodies successful the U.S., which noted that the announcement to trim tariffs and non-tariff barriers would payment some American and Indian companies and workers successful some countries.
“We are optimistic that this is the archetypal measurement toward a broad commercialized statement that volition unlock adjacent much backstage assemblage collaboration, and we look guardant to reviewing the details of the deal,” U.S. Chamber of Commerce President and CEO Suzanne P. Clark said.
The electronics sector, which accounts for a ample portion of India-U.S. trade, is besides expected to acquisition a “major catalyst” from the deal, according to Ashok Chandak, President of SEMI India and the India Energy Storage Alliance.
“By improving marketplace access, enabling smoother travel of superior instrumentality and precocious technologies, and — erstwhile complemented by the iCET and TRUST initiatives — strengthening trusted proviso chains and deepening exertion collaboration, the statement importantly enhances India’s attractiveness arsenic a planetary manufacturing and innovation hub,” Mr. Chandak said.
Enhances competitiveness and predictability
Apart from manufacture bodies, the heads of respective Indian companies reacted positively to the deal, saying it would positively interaction them.
“The Aditya Birla Group is the largest Indian capitalist successful the U.S., and we spot this statement assistance signifier much resilient proviso chains, unlock manufacturing opportunities and thrust semipermanent economical competitiveness successful some the U.S. and India,” Kumar Mangalam Birla, Chairman of the Aditya Birla Group said.
He added that the Group was committed to expanding its beingness and investments successful the U.S.
Sudarshan Venu, Chairman of the TVS Motor Company highlighted the information that present India has commercialized deals with cardinal economical partners astir the world.
“In a challenging planetary environment, predictability and openness successful commercialized assistance Indian manufacture scale, innovate and make jobs,” Mr. Venu said.
Anish Shah, Group CEO & Managing Director of the Mahindra Group said that the simplification successful tariffs connected Indian exports, on with the committedness to progressively little tariff and non-tariff barriers, “will boost maturation momentum and amended the predictability businesses request to put with confidence”.
Some issues to support successful mind
According to Rahul Ahluwalia, Founder-Director of the Foundation for Economic Development, India’s tariffs volition present beryllium little than China, and connected a level playing tract with competitors similar Vietnam and Bangladesh,with lone a fewer geographies specified arsenic the U.K., EU, and Japan attracting little U.S. tariffs than India.
“However, we should not instrumentality this commercialized woody for granted,” Mr. Ahluwalia cautioned. “Trump has shown a large woody of unpredictability successful pursuing through. Our astir urgent task should stay interior reforms that assistance our regulations and institutions go globally competitive.”
Sanjaya Mariwala, Executive Chairman and Managing Director of OmniActive Health Technologies, portion lauding the woody and the apt extremity of commercialized disruptions betwixt India and the U.S., besides said that it again raised immoderate peculiar concerns relating to the nutraceuticals sector.
“Pharmaceuticals person had a clearer medicinal commercialized identity, which helped them debar akin disruptions, portion nutraceutical products person often been treated arsenic wide nutrient items,” Mr. Mariwala said. “That quality has existent consequences, from work vulnerability to declaration risk.”
He said that giving nutraceuticals a “more appropriate” classification model would region recurring uncertainty and let the assemblage to turn “with the stableness expected of a healthcare-linked industry”.
