Finalisation of ‘Father of All Deals’ - India–US Trade Deal as a Historic Milestone and Reduction of US Tariffs to 18% on Indian Products a Major Boost for Exports Sector: FIEO President

New Delhi, February 3, 2026: The Federation of Indian Export Organisations (FIEO) wholeheartedly hails the finalisation of ‘Father of All Deals’, the India–US Trade Deal, under which the United States has agreed to reduce tariffs on all Indian-made products to 18 percent, marking a significant milestone in further boosting and strengthening bilateral trade relations between the two countries.
 
Terming the development as a historic milestone and game-changer for Indian exporters, Mr S C Ralhan, President, FIEO, said that the agreement would enhance the competitiveness of Indian products in the US market and provide a strong impetus to India’s export growth across sectors.
 
“The finalisation of the India–US Trade Deal and the reduction of US tariffs to 18 percent on Indian-made products is a landmark achievement. It reflects the growing strategic and economic partnership between India and the United States and opens up vast opportunities for Indian exporters, particularly MSMEs,” said Ralhan.
 
Ralhan highlighted that sectors such as engineering goods, textiles and apparel, pharmaceuticals, chemicals, leather products, gems and jewellery, and agricultural products are expected to gain significantly from the tariff rationalisation.
 
“Lower tariffs will not only improve price competitiveness but also help Indian exporters integrate more deeply into US supply chains. This agreement will encourage capacity expansion, attract fresh investments, and support job creation in export-oriented industries,” he added.
 
The reduction in reciprocal tariffs—from earlier levels of around 50% to 18%, as indicated—would be a major game-changer for the competitiveness of Indian exports vis-à-vis other Asian suppliers. It is expected to lead to an immediate and substantial release of orders that were earlier put on hold, particularly in labour-intensive sectors such as apparel, textiles, leather and footwear, where global buyers typically lock in summer season sourcing by December. With sharper price parity, improved tariff certainty, and strong buyer confidence in Indian suppliers, these sectors are poised for a rapid surge in orders and a strong acceleration in export growth in the coming months.
 
The FIEO President also appreciates the proactive role played by the Government of India under the able and dynamic leadership of the Hon’ble Prime Minister, Narendra Modi in safeguarding exporters’ interests and engaging constructively with US counterparts to arrive at a mutually beneficial outcome.
 
“This agreement sends a strong signal to global markets about India’s commitment to free, fair, and rules-based trade. FIEO remains confident that this development will help India achieve its long-term export targets and further strengthen India’s position as a reliable global trading partner,” S C Ralhan stated.
 
FIEO Chief reiterated the Federation’s commitment to working closely with exporters and stakeholders to ensure effective utilisation of the benefits arising from the agreement and to address any implementation-related issues in a timely manner.