Indian exports to see exponential rise following India-US trade deal:Exporters say ‘father of all deals’ will immensely benefit textile, leather sectors

The US President Donald Trump’s claim that both America and India have agreed to a trade deal got cheers from the top exporters of the country. According to them, the reduction in ‘Trump Tariffs’ to 18% from 50% (effective immediately) would immensely benefit exports. The sectors that stand to gain most because of the deal are textile, leather, engineering goods, gems and jewellery. US is India’s largest trading partner: Confederation of Indian Industry (CII), president, Rajiv Memani said on Tuesday to ANI, “The United States, the world’s largest economy, is also India’s largest trading partner, with total Indian exports to the US estimated at around $80-90 billion annually.” Which sectors has highest share in India’s export to the US? According to Memani, out of total exports of $80-90 billion, nearly 50-60% or roughly $50 billion, comes from labour-intensive sectors such as garments, leather, fisheries, gems and jewellery, auto components and engineering goods. He further added that tariff relief in trade with the US opens up an export opportunity of nearly $50 billion (₹4.50 lakh crore) for India, particularly in labour-intensive sectors that had come under pressure in recent months. Moody’s Ratings also advocated the fact that the reduction of the US tariff rate on most Indian goods is credit positive for labour-intensive sectors such as gems, jewellery, textiles and apparel, which are the top export sectors. Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry (CITI), said to ANI that the finalisation of the India-US trade deal has come as a major relief for India’s textile and apparel industry. Textiles and apparel, gems and jewellery, leather and footwear, engineering goods, and auto components stand to benefit disproportionately, as these sectors compete directly with Vietnam and Bangladesh in the US market. – Rudra Kumar Pandey , Partner, Shardul Amarchand Mangaldas Co., said to PTI Century Plyboards India Ltd, Managing Director, Sanjay Agarwal also said to PTI that the new trade dynamics are expected to benefit a wide range of sectors, including pharma, engineering and auto ancillaries.
Global institutions raise India’s GDP target: Global investment banks raise India’s GDP projections after Trump’s claim of a reduction of tariffs on Indian goods to 18%. According to ANI, Goldman Sachs said, “Overall, we raise our CY26 real GDP growth forecast by 20 basis points to 6.9% yoy.” Which sectors are already exempted from ‘Trump Tariffs?’ The top Republican had already kept sectors like pharmaceuticals and consumer electronics out of the ‘Trump Tariffs.’