Mirzapur to make a comeback as India–US announce trade deal

Carpet weavers to get relief from US tariffs

• US lowers tariffs on Indian goods from 50% to 18%, aiding export districts
• Mirzapur, Bhadohi, Varanasi to benefit, aiding carpet and handicraft makers.
• Pathanamthitta, Sehore, and Udaipur see relief in key exports.

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It’s not just Mirzapur, the popular TV series, that is set for a comeback in 2026. The eastern Uttar Pradesh district may also see a revival in trade fortunes, with India and the United States announcing a trade agreement that could ease tariff-related pressures, a Moneycontrol analysis shows.

“Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Prime Minister Narendra Modi had said on social media platform X.

Mirzapur and neighbouring Bhadohi—both globally known for carpet manufacturing—were among the districts most exposed to the 50 percent tariff imposed during US President Donald Trump’s tenure. Their export dependence on the US market made them particularly vulnerable to higher duties.

On February 2, the US President announced a lowering of tariff to 18 percent from 50 percent earlier.

The analysis shows that of the more than 600 Indian districts engaged in exports, 117 shipped goods in categories where the US accounted for over two-thirds of India’s total outbound trade in FY25. In Mirzapur, where carpet-making dominates the local economy, over 60 percent of exports fell into such high-dependence categories—products for which nearly three-fourths of India’s shipments were destined for the US.

Pathanamthitta in Kerala faced a similar exposure pattern. The district relies heavily on the US market for turmeric oil, a food additive in strong demand. In FY25 alone, Pathanamthitta exported Rs 67.6 crore worth of turmeric oil, with the bulk headed to American buyers.

Handicraft clusters in Varanasi are also expected to benefit from a thaw in trade relations. A large share of the district’s export value was concentrated in US-dominated categories, leaving artisans and exporters particularly exposed to tariff shocks. Carpets, along with electronics and gems and jewellery, rank among India’s top 20 exports to the US. In FY25, India exported $1.23 billion worth of carpets as part of its $86.5 billion goods trade with the US.

The vulnerability extends beyond Uttar Pradesh. In cotton linen products such as bed and toilet linen, Sehore in Madhya Pradesh stood out as highly exposed. Commerce ministry data show that over a third of the district’s exports were in categories where the US was the dominant buyer. Udaipur in Rajasthan also faced elevated risk, with 36 percent of its plastic strip exports falling into US-heavy categories.

Even agricultural exports were not immune. In Baghpat, Uttar Pradesh, honey shipments were at risk, with 32 percent of the district’s exports concentrated in categories where more than 78 percent of India’s total exports went to the US.