India-US Trade Deal to Boost Exports, Cut Tariffs to 18%: Sitharaman
Zoom Chronicle News | New Delhi:
Union finance minister Nirmala Sitharaman on Tuesday said the India-US trade deal will bring major relief to exporters and help the China+1 strategy gain momentum. Speaking in an interview, she said the agreement, which cuts US tariffs on Indian goods to 18%, aligns with the Union Budget’s long-term roadmap for Viksit Bharat by 2047. According to her, the move places Indian exporters in a stronger position against global competitors.
Tariff Cut to Strengthen Rupee, Attract Capital Flows
Sitharaman said the tariff reduction offers a clear advantage to Indian exporters. “This is very good news. Our exporters now stand at an advantage,” she said. As a result, she expects improved capital inflows and a positive impact on the rupee. Notably, the currency recorded its biggest single-day gain since March 2020 following the announcement. Meanwhile, she said global firms are likely to expand manufacturing in India while retaining operations in China, allowing the China+1 strategy to play out fully.
Budget 2026-27 Focuses on Stability and Reforms
Highlighting the broader vision of the Union Budget 2026-27, Sitharaman said it provides clarity and stability in policymaking. According to her, stability in taxation, manufacturing policies, Centre-state relations, and reforms remains central to the government’s approach. She underlined that reform momentum will continue. “There is always scope to improve,” she said, adding that India aims to project itself as a competitive manufacturing and export hub. Additionally, she said Niti Aayog is reviewing recommendations submitted by two administrative reform committees formed earlier.
MSMEs and Common Man at the Centre of Budget Measures
Sitharaman said micro, small and medium enterprises (MSMEs) remain a key focus, as they contribute nearly 40% to India’s economy. Therefore, the budget includes steps to improve credit access, ease exports, and support legacy industrial clusters. She also said the common man benefits directly and indirectly from these measures. For instance, the government simplified procedures for small businesses and extended export timelines. Similarly, initiatives like the SHE (Self-Help Entrepreneur) Mart aim to help women entrepreneurs connect with global markets and access affordable loans.
