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Moody’s Ratings connected Tuesday (February 3, 2026) said the simplification of the U.S. tariff complaint connected astir Indian goods is recognition affirmative for labour-intensive sectors specified arsenic gems, jewellery, textiles and apparel, which are the apical export sectors.
India and the U.S. person agreed to a commercialized woody nether which Washington volition bring down reciprocal tariffs connected Indian goods to 18% from the existent 25%, U.S. President Donald Trump said connected Monday (February 2) aft a telephone speech with Prime Minister Narendra Modi.
India-U.S. commercialized woody LIVE | February 3, 2026
Moody’s, successful a statement, said the commercialized woody volition reinvigorate India’s goods export maturation to the U.S., which remains the country’s largest goods export market, accounting for astir 21% of India’s full goods exports for the archetypal 11 months of 2025.
“Lower tariff complaint volition besides beryllium recognition affirmative for labour-intensive sectors specified arsenic gems, jewellery, textiles and apparel, which fertile the apical export sectors,” it said.
However, pharmaceuticals and user electronics, the different 2 large export sectors, had been exempt from the 50% precocious tariffs imposed by the U.S. and truthful are improbable to beryllium affected by the reduction.
Moody’s said adjacent though India has reduced its acquisition of crude lipid from Russia successful caller months, it is improbable to cease each purchases immediately, which could beryllium disruptive to India’s economical growth.
“A implicit displacement toward non-Russian lipid could besides tighten proviso elsewhere, rise prices and walk done to higher ostentation fixed that India is 1 of the world’s largest lipid importers,” Moody’s said.
