New Delhi, Feb 8 (IANS) The interim US trade deal framework supports India’s broader goal of crossing $120 billion in engineering exports in FY2025‑26, according to the industry.
Moreover, according to the Engineering Export Promotion Council of India (EEPC), the tariff reduction also strengthens India’s journey toward the target of achieving $250 billion in engineering exports by 2030, “especially as better access to the US market is a key to reaching that milestone”.
“The US being the largest market for engineering goods, EEPC India welcomes the release of a framework for an interim deal between the two countries, which reduces duties and trade barriers,” the council said in a statement.
The proposed agreement would boost local manufacturing and provide greater market access for Indian exporters, including those in the engineering space, into the world’s largest economy, it added.
The US will cut tariffs on Indian goods to 18 per cent. Additionally, India will also get a preferential tariff rate quota for automotive parts.
This is set to help the engineering exports sector regain its competitiveness in the US market. MSME engineering exporters are expected to significantly gain from the trade deal with the US, said the EEPC.
EEPC India hopes that, going forward, duties imposed by the US under Section 232 on steel, aluminium, auto, and auto components would also ease.
“A deeper trade partnership with the US bodes well for both sides. Once an interim deal is signed and a comprehensive agreement follows, the Indian engineering sector could see much stronger export growth. It will significantly contribute towards achieving the engineering exports target of $250 billion by 2030,” it mentioned.
Moreover, the US-India joint statement has boosted the confidence of the Indian engineering sector.
The trade deal would not only help engineering exporters win back many old buyers but also get new customers, thus ensuring stronger export growth in the coming months.
—IANS
na/
