Lower tariffs under India-US trade pact to aid engineering exports: EEPC India

Kolkata, Feb 2 (PTI) EEPC India on Monday welcomed the announcement of a trade deal with the US under which Washington will lower reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, and said it could significantly boost engineering shipments.

“While the detailed contours of the agreement are yet to be made public, the Prime Minister’s message clearly mentioned lower tariffs for Made in India products, which is very good news,” Shah said, adding that the US remains India’s largest trading partner.

India and the US agreed on a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, US President Donald Trump said on Monday, after a phone conversation with Prime Minister Narendra Modi.

The engineering sector, which contributes nearly one-fourth of India’s total merchandise exports, is expected to be among the biggest beneficiaries of the trade deal.

Shah said the anticipated tariff relief could result in stronger-than-expected growth in engineering exports in the current financial year.

“The tariff boost should help the engineering industry end the year on a strong note, and also lay the foundation for a much better 2026-27 in terms of global exports,” he said.

However, Shah said it would be premature to quantify the exact impact on engineering exports until the agreement’s sector-wise details are formally announced.

He said exporters are awaiting clarity on product categories and market access provisions.

“Once the finer details are available, we will have a clearer picture of how much Indian engineering exports stand to gain,” Shah said. PTI BSM RBT