India-US Interim Trade Deal Cuts Tariffs to 18%, Boosting Export Competitiveness

India and the US have finalized an interim trade framework reducing reciprocal tariffs on Indian exports to 18%, down from previous rates as high as 50%. This move is expected to enhance India's export competitiveness, particularly benefiting labour-intensive sectors like textiles, leather, and engineering. Experts anticipate increased export volumes, job creation, and improved market share against competitors such as China and Bangladesh. While export-oriented industries and stock markets respond positively, some domestic sectors may face increased competition from US imports. The deal also supports India's economic growth forecast and aims to strengthen bilateral trade ties.