Finalisation of ‘Father of All Deals’ -
India–US Trade Deal as a Historic Milestone and Reduction of US Tariffs to 18%
on Indian Products a Major Boost for Exports Sector: FIEO President
New Delhi, February 3, 2026: The Federation of Indian Export Organisations (FIEO) wholeheartedly
hails the finalisation of ‘Father of All Deals’, the India–US Trade Deal, under
which the United States has agreed to reduce tariffs on all Indian-made
products to 18 percent, marking a significant milestone in further boosting and
strengthening bilateral trade relations between the two countries.
S C Ralhan, President, FIEO
Terming the development as a historic
milestone and game-changer for Indian exporters, Mr S C Ralhan, President,
FIEO, said that the agreement would enhance the competitiveness of Indian
products in the US market and provide a strong impetus to India’s export growth
across sectors.
“The finalisation of the India–US Trade
Deal and the reduction of US tariffs to 18 percent on Indian-made products is a
landmark achievement. It reflects the growing strategic and economic
partnership between India and the United States and opens up vast opportunities
for Indian exporters, particularly MSMEs,” said Mr Ralhan.
Mr Ralhan highlighted that sectors such
as engineering goods, textiles and apparel, pharmaceuticals, chemicals, leather
products, gems and jewellery, and agricultural products are expected to gain
significantly from the tariff rationalisation.
“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,” he
added.
The reduction in reciprocal
tariffs—from earlier levels of around 50% to 18%, as indicated—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. 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.
The FIEO President also appreciates the
proactive role played by the Government of India under the able and dynamic
leadership of the Hon’ble Prime Minister, Shri Narendra Modi in safeguarding
exporters’ interests and engaging constructively with US counterparts to arrive
at a mutually beneficial outcome.
“This agreement sends a strong signal
to global markets about India’s commitment to free, fair, and rules-based
trade. FIEO remains confident that this development will help India achieve its
long-term export targets and further strengthen India’s position as a reliable
global trading partner,” Mr S C Ralhan stated.
FIEO Chief reiterated the Federation’s
commitment to working closely with exporters and stakeholders to ensure
effective utilisation of the benefits arising from the agreement and to address
any implementation-related issues in a timely manner.
