Pune, Feb 3 (IANS) Foreign affairs expert Dr. Shailendra K. Deolankar has described the India-US trade agreement as a significant victory for New Delhi, stating that the withdrawal of steep tariffs imposed by America will revive key labour-intensive export sectors and strengthen India’s position in global trade.

Speaking about the development, Dr. Deolankar recalled that in April 2025, US President Donald Trump had announced a 50 per cent tariff on certain Indian goods, including an additional 25 per cent duty aimed at penalising India for purchasing oil from Russia. He noted that while India has continued importing Russian oil, the tariff burden has now been withdrawn unilaterally by the US.

According to him, the biggest gains from the agreement will be seen across four major sectors, auto parts and auto components, gems and jewellery, garments and leather, agriculture, fisheries and dairy products. He emphasised that these sectors are largely labour-intensive and heavily supported by Micro, Small and Medium Enterprises (MSMEs).

Dr. Deolankar said that goods worth nearly $32 billion, which had earlier faced 50 per cent tariffs, had become uncompetitive in the American market. The tariff removal is expected to restore India’s export competitiveness, especially in textile and home furnishing segments such as carpets, bedsheets, pillow covers and curtains.

He added that the revival of these exports will help India regain access to a large American consumer market and provide a strong boost to employment-driven industries.

Highlighting the broader trade context, Dr. Deolankar said India’s total goods and services exports in 2025 stood at approximately $900 billion, of which exports to the United States accounted for around $76 billion.

He noted that the earlier tariff measures had resulted in an estimated loss of $6–7 billion for India, particularly impacting sectors such as auto components, gems and jewellery, and garments and leather.

He said the new trade agreement is expected to compensate for these losses while opening fresh opportunities for Indian exporters.

Experts believe that the deal marks a major step in strengthening India’s economic engagement with the US while safeguarding domestic manufacturing and employment-driven industries.

–IANS

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