India’s export “gamechanger”: Trump slashing tariffs to 18% undercuts Asian rivals

Saturday, 7 February 2026 02:03 - - {{hitsCtrl.values.hits}}

Indian Prime Minister Narendra Modi and US President Donald Trump

Exporters say new trade deal to lead to an immediate and substantial release of orders that were earlier put on hold
US is India’s largest export market with shipments in FY25 valued at $ 86.51 b

The Hindu Business Line: The tariff cuts announced by US President Donald Trump, slashing duties on Indian goods from 50% to 18%, would be a major “game-changer” for the competitiveness of Indian exports vis-à-vis other Asian suppliers, as it brings tariffs to one of the lowest, exporters say.

“Indian tariffs are now among the lowest. We have swung from the highest to the lowest amongst all neighbours. Textiles and apparels is up for a big boom,” said ICC National Expert Committee on Textiles, Textiles Exporter and Chair Sanjay Jain.

At 18%, India’s tariffs are lower than China’s (at 30-35%), Vietnam (20%), Bangladesh (20%) and Indonesia (19%), providing the country’s exporters a distinct advantage, pointed out Jain.

The FTA will lead to an immediate and substantial release of orders that were earlier put on hold, particularly in labour-intensive sectors such as apparel, textiles, leather and footwear, where global buyers typically lock in summer season sourcing by December,” exporters body FIEO noted.

“The reduction in tariffs would be a major game-changer for the competitiveness of Indian exports vis-à-vis other Asian suppliers. It is expected to lead to an immediate and substantial release of orders that were earlier put on hold, particularly in labour-intensive sectors such as apparel, textiles, leather and footwear, where global buyers typically lock in summer season sourcing by December,” pointed out exporters’ body FIEO in a statement.

With sharper price parity, improved tariff certainty, and strong buyer confidence in Indian suppliers, these sectors are poised for a rapid surge in orders and a strong acceleration in export growth in the coming months, it said.

“Lower tariffs will not only improve price competitiveness but also help Indian exporters integrate more deeply into US supply chains. This agreement will encourage capacity expansion, attract fresh investments, and support job creation in export-oriented industries,” said FIEO President S.C. Ralhan.

The US is India’s single largest export market and improved trade terms will significantly enhance the competitiveness of Indian apparel products in the US market, pointed out Apparel Export Promotion Council Chairman A. Sakthivel.

The US was India’s largest export market with shipments in FY25 valued at $ 86.51 billion.