India’s recent trade agreement with the United States, under which U.S. tariffs on Indian goods were reduced to about 18 %, positions Indian exporters favourably compared to several regional peers. Here are three key reasons this deal gives India a competitive edge over countries like Pakistan, China and Bangladesh: 1. Lower U.S. Tariffs Than Regional Competitors Under the new trade deal, the U.S. has agreed to cut reciprocal tariff rates on Indian exports to around 18 %, significantly lower than the tariffs applied to some neighbouring competitors. Reuters reports that this rate is lower than the tariffs still faced by countries such as Pakistan and China — typically closer to or above 19–20 % under U.S. tariff schedules. Being able to export to the world’s largest consumer market at a lower duty rate enhances India’s price competitiveness relative to these peers. Reducing U.S. tariffs means Indian goods become more affordable to American buyers compared with similar products from Pakistan, China, and Bangladesh. Lower duties can translate into higher export volumes, improved market share, and stronger penetration of sectors such as textiles, engineering goods, chemicals and more — industries where cost competitiveness matters significantly. 2. Preferential Market Access Encourages Export Growth… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
