Surat

Textile and jewellery traders in Gujarat’s Surat have welcomed the India–US trade agreement, expressing optimism that the reduction in tariffs to 18 per cent will significantly boost exports and lead to a sharp rise in sales.

Industry representatives credited Prime Minister Narendra Modi’s leadership for securing the deal, with some traders suggesting that India’s recent free trade agreements with several global partners, including the European Union, played a key role in influencing the US administration’s decision.

Ashok Jirawala, President of the All Gujarat Textile Federation, said the agreement would strengthen India’s position in the global textile market. “This reflects the strength of PM Modi’s government. The US may have realised that India could shift its trade focus due to agreements with other countries. The US is our largest market for garments, curtains, bed linen and specialised fabrics, and American consumers were also seeking tariff relief,” he said.

Ranganath Sharda, Secretary of Ashoka Market and a textile exporter, said India now enjoys a competitive advantage over key exporting nations such as China, Pakistan and Bangladesh. “This is a major decision for exporters. Our shipments had slowed down due to high duties, but with tariffs coming down to 18 per cent, exports are expected to double or even triple,” he said.

Sharda added that India currently exports textiles worth around Rs 25,000 crore to the US, a figure that could rise to Rs 50,000–75,000 crore. “With lower tariffs compared to competing countries, Indian exporters stand to gain significantly. We expect sales growth of 100 to 150 per cent if current conditions continue,” he said.

The jewellery sector has also responded positively to the agreement. Nainesh Pachigar, Gujarat State President of the Indian Bullion and Jewellers Association, said the reduction in tariffs would help revive exports that had been adversely affected in recent months. “The entire industry welcomes this development. Our exports to the US had declined due to higher duties, but with tariffs now reduced to 18 per cent, business will pick up again. We hope tariffs eventually fall to zero, which would restore exports to earlier levels,” he said.

The India–US trade deal was finalised on February 2 following successful discussions between the leadership of both nations. Under the agreement, the US reduced its reciprocal tariff on Indian goods from 25 per cent to 18 per cent and also withdrew the additional 25 per cent levy linked to India’s import of Russian crude oil.

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Industry leaders believe the agreement will ease trade frictions, revive export momentum, and improve the overall business climate between India and the United States, while strengthening long-term economic cooperation between the two countries.