MC EXCLUSIVE India-US trade deal to benefit all sectors like textile, marine, engineering, says DEA secretary

American President Donald Trump on February 2 announced that the US and India have agreed to a trade deal, whereby the US will charge a reduced reciprocal tariff of 18 percent, down from 25.

• US lowers tariffs on Indian exports from 25% to 18% in new trade deal
• Textile, marine, engineering, and gems sectors to gain from tariff cuts
• India's merchandise exports worth $48.2 billion to US will face lower duties

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India-US trade deal will benefit all the sectors including marine, textile and engineering, Anuradha Thakur, department of economic affairs secretary said in an exclusive interaction on February 3 following the announcement.

“India US trade deal to benefit all the sectors, we had a good amount of exports with the US like marine, textile, engineering", the secretary said.

American President Donald Trump on February 2 announced that the US and India have agreed to a trade deal, whereby the US will charge a reduced reciprocal tariff of 18 percent, down from 25.

After the deal, as much as $48.2 billion worth of India’s merchandise exports to the US are now likely to face lower tariffs of 18 percent, as per projection by India’s commerce ministry in August 2025, which assessed the value of Indian exports that were facing steep 50 percent tariffs in the US.

The country’s merchandise exports to the US stood at $86.51 billion in 2024-25. Textile exports worth nearly $11 billion and gems and jewellery shipments of almost $10 billion are expected to benefit substantially from the tariff reduction.

Marine product exports valued at $2.7 billion, organic and inorganic chemicals worth $4.2 billion, and leather exports of close to $1 billion are also set to gain from lower duties.

“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump said in a post on truth social.

He added, “This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent.”

Prime Minister Narendra Modi also underscored the broader significance of the agreement and said that Made in India products will now have a reduced tariff of 18 percent.

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. I look forward to working closely with him to take our partnership to unprecedented heights,” Modi said in a post on X.