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Anticipated tariff relief under U.S.-India trade deal to boost engineering shipments: EEPC India
Feb-03-2026

EEPC India has welcomed the announcement of a trade deal with the United States (US) under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from the existing 25 per cent. It said the move could provide a major boost to engineering shipments. 

EEPC India’s Vice Chairman, Aakash Shah said ‘while the detailed contours of the agreement are yet to be made public, the  Prime Minister Narendra Modi's message clearly mentioned lower tariffs for Made in India products, which is very good news.’ He said that for the fourth year in a row, the US remains India's largest trading partner in 2024-25. He noted that the engineering sector, which constitutes nearly one-fourth of India's total merchandise exports, is expected to be among the biggest beneficiaries of the trade deal. He said the anticipated tariff relief could result in stronger-than-expected growth in engineering exports in the current financial year. He added that the tariff boost should help the engineering industry end the year on a strong note, and also lay the foundation for a much better 2026-27 in terms of global exports.

However, he said it would be premature to quantify the exact impact on engineering exports until the agreement's sector-wise details are formally announced. He said exporters are awaiting clarity on product categories and market access provisions. He said ‘once the finer details are available, we will have a clearer picture of how much Indian engineering exports stand to gain’.  


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