Daijiworld Media Network – New Delhi

New Delhi, Feb 3: Industry body ASSOCHAM has hailed the India–US trade deal, stating that it marks the beginning of a new era of global trade leadership and significantly strengthens bilateral economic ties between the two countries.

In a statement, ASSOCHAM president Nirmal K Minda said that bilateral trade between India and the United States is expected to touch USD 500 billion over the next five years. He described the reduction of US tariff rates on Indian exports to 18 per cent as a major breakthrough in India’s trade relations with the world’s largest economy.

Minda said the historic tariff cut is set to propel the trade trajectory between India and the US to the next level, as it substantially enhances the cost competitiveness of Indian exporters in the American market. He noted that with the revised rate of 18 per cent, India now enjoys lower tariffs compared to key competing exporting nations such as Bangladesh, Vietnam, Sri Lanka, Taiwan, Pakistan, Indonesia, Malaysia, and Thailand.

He further pointed out that even major exporters like Canada and South Africa face higher duties, placing India in a relatively advantageous position globally. Calling it a significant breakthrough for ‘Made in India’ products, Minda said the move ensures improved access for Indian goods to the US market.

According to him, the development is expected to strengthen labour-intensive sectors including textiles, garments, footwear, and electronics. He added that it would deepen bilateral economic cooperation, attract global buyers, encourage supply chain investments into India, and sustainably enhance the country’s export prospects, reinforcing India’s leadership in global trade.