USISPF Hails India-US Tariff Cut, Signals Broader Trade Agreement Momentum

• USISPF welcomed the India-US tariff reduction from 25% to 18%, calling it a positive step towards deepening economic partnership and a broader bilateral trade agreement (BTA).
• The tariff cut signals strong political intent from both nations to address issues like tariffs, market access, and non-tariff barriers across sectors.
• Market experts, including Garima Kapoor of Elara Capital, noted the 18% tariff improves India's competitive positioning, potentially falling to 14.1% if Russia-related penalties are removed.
• Export sectors like gems and jewellery, textiles, machinery, and automobiles are expected to benefit significantly from this development.
• Exporters, while welcoming the move, seek further clarity on details, especially regarding conditions linked to Russian oil purchases and increased US energy imports.

Why It Matters: India-US tariff cut boosts trade ties, setting the stage for a comprehensive bilateral trade agreement.