India’s leading industry associations have welcomed the India–US trade deal announced late last night, saying the sharp reduction in reciprocal tariffs and a roadmap to ease non-tariff barriers could strengthen manufacturing competitiveness, supply chains and investment sentiment.

Industry bodies back tariff cut, policy certainty

The Confederation of Indian Industry (CII) said the expected reduction of US–India tariffs to 18% marks a meaningful step in deepening the strategic economic partnership between the two countries. CII President Rajiv Memani said the agreement would enhance the global competitiveness of Indian products while catalysing manufacturing growth, job creation and the development of more resilient supply chains.

CII also credited the leadership of Prime Minister Narendra Modi and Commerce and Industry Minister Piyush Goyal for steering a forward-looking dialogue with India’s most important trade partner, adding that the deal reflects a shared commitment to strengthening trade, technology and investment ties.

Lower tariffs seen easing costs, inflation

The PHD Chamber of Commerce and Industry (PHDCCI) echoed similar views, highlighting the wider economic impact of lower tariff duties. PHDCCI President Rajeev Juneja said reduced tariffs help cut input costs, strengthen supply chains and ease inflationary pressures by lowering prices for businesses and consumers.

He added that better access to intermediate goods, capital equipment and critical components would support sectors such as manufacturing, technology, healthcare and renewable energy, while reinforcing trust and predictability in bilateral trade.

Why the US matters for India’s industry

The United States is among India’s most important export destinations and a key partner across manufacturing, technology and investment flows. Industry executives believe improved tariff visibility and reduced policy friction could help Indian companies scale high-value exports, deepen global value-chain integration and accelerate capacity expansion.

About the India–US trade deal

The India–US trade deal focuses on easing trade frictions by cutting reciprocal tariffs on Indian exports to 18% from an earlier 50% and outlining a framework to gradually reduce tariff and non-tariff barriers. Industry bodies see the agreement as a structural positive supporting India’s manufacturing-led growth and global competitiveness goals.