NEW DELHI — Experts have welcomed the United States’ decision to reduce tariffs on Indian imports and exports to 18 percent, saying the move is expected to strengthen bilateral trade ties and provide significant relief to India’s textile industry.
Agricultural economist R.S. Ghuman said that under World Trade Organization norms, such high tariffs should ideally not be imposed, as they restrict the growth potential of bilateral trade.
“With tariffs now reduced to 18 percent, the decision is expected to significantly benefit import and export activity between the two countries,” Ghuman said. “This step will give fresh momentum to trade and boost overall business activity.”
Ghuman noted that while the tariff cut is a positive development, it will be important to closely monitor the quality of goods traded going forward. He also pointed out that dairy products and certain agricultural items have been excluded from the current arrangement.
“India is a global leader in rice exports, which are closely linked to the Minimum Support Price system,” he said, adding that the decision could have implications within the broader global trade framework.
Despite these caveats, Ghuman said India stands to gain considerably from the reduction in tariffs, even with the current focus remaining on bilateral trade.
The textile industry has also described the move as a major relief. Selvaraj, Secretary General of the Southern India Mills’ Association, said the rollback of the earlier 50 percent punitive tariff to 18 percent amounts to a “lifeline” for the sector.
He expressed gratitude to the Prime Minister and the Union Ministers for Commerce and Textiles for their diplomatic efforts in securing the lower tariff rate.
“The revised rate is currently the lowest among competing export nations, restoring India’s global competitiveness,” Selvaraj said.
He added that recent trade agreements with the United Kingdom and Europe, along with supportive measures announced in the Union Budget 2026–27, have helped strengthen confidence across the textile industry. (Source: IANS)
