A Sakthivel Hails India-US Trade Deal as Landmark Moment
A Sakthivel, the Chairman of the Apparel Export Promotion Council, expressed admiration for the India-US interim trade agreement, considering it as a significant milestone for the Indian apparel industry that has faced challenges due to US tariffs.
He observed that the industry had encountered substantial difficulties in the recent six-month period as a result of the imposition of 25 percent tariffs by the US, leading to considerable unrest among exporters.
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"This is a big moment for the Apparel sector. We call it the father of all deals. We have been in turmoil for the past six months due to 25 percent penalties. The moment a saturation point was reached, this deal was announced. This is a win-win situation for both countries. This deal took time because our government wanted to safeguard the interests of our citizens, especially farmers," A Sakthivel says.
KM Subramanian, the President of the Tirupur Exporters Association, echoed the sentiment and expressed his support for the "landmark agreement."
"We are very happy with this historic deal. We do around Rs 14,000 crores in business with the American market. This will get doubled within three years. This deal will also increase employment and foreign exchange," he says.
Earlier in the day, the Minister of Commerce and Industry, Piyush Goyal, stressed that the temporary trade deal between India and the US represents more than just a business agreement, but rather serves as a fundamental aspect of a significant geopolitical transformation.
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Goyal highlighted that the agreement showcases the extensive scope of the India-US relationship, encompassing various sectors such as defense, technology, critical minerals, and strategic collaboration.
Goyal stressed the importance of strategic alignment as the ultimate goal, with trade serving as the means to achieve this objective.
The agreement aims to solidify a partnership that is thriving in numerous crucial areas. The framework for an Interim Agreement on reciprocal, mutually beneficial trade was announced by the US and India, as they reiterated their dedication to a comprehensive Bilateral Trade Agreement (BTA) initiated by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.
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Within the structure of the agreement, India has committed to either completely removing or significantly decreasing tariffs on various industrial goods and an extensive selection of agricultural and food items from the US.
These products include dried distillers' grains (DDGs), red sorghum utilized in animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and various other goods.
Alternatively, the US plans to implement a corresponding tariff of 18 percent on products imported from India, such as textiles, apparel, leather, footwear, plastic goods, rubber goods, organic chemicals, home furnishings, handmade products, and certain types of machinery.
Should the Interim Agreement be successfully finalized, the US has indicated that it will subsequently eliminate reciprocal tariffs on specific items like generic pharmaceuticals, gems, diamonds, and aircraft components.