US Tariff Relief Set to Boost Textile, Auto Parts, and Pharma Sectors; Delhi to Gain ₹1,000 Crore

New Delhi: The recent decision by the United States to reduce tariffs on Indian goods from 50% to 18% is expected to provide a major boost to Indian exporters, particularly in the textile, pharmaceutical, and auto parts sectors. Analysts estimate that this move could generate around ₹1,000 crore in trade for Delhi alone.

Relief for Exporters After Months of High Tariffs
For months, high tariffs had made Indian products expensive in the US, resulting in delayed orders, factory shutdowns, and job losses. The tariff reduction is expected to revive demand, create new employment opportunities, and restore confidence among exporters.

CP Sharma, National President of the Handloom & Handicraft Exporters Welfare Association, said, “For the past six months, businesses have been struggling. Many companies reduced purchases from India, leading to loss of jobs. Now, this decision comes as a major relief. The recent free trade agreement between India and the European Union also sent a strong signal that India does not rely on a single market.”

Pharma Exports to Gain Momentum
Pharmaceutical exports, including BP, cancer, asthma, antibiotic, and injectable drugs, are expected to pick up pace. Exporters like Lalji Khanna noted that high tariffs had stalled demand for nearly three months, causing significant losses. With the reduction, Indian medicines—affordable yet effective—are poised to reach US markets faster.

Auto Parts and Crystal Exports to Accelerate
Businesses in Delhi’s Kashmere Gate auto parts market expect demand to rise, especially for motorcycle and vehicle components. Vinay Narang, an auto parts exporter, said that higher tariffs had reduced business by around 15%, which will now recover. Similarly, crystal jewelry exports are anticipated to gain momentum after months of stagnation.

Overall Impact on Delhi and Key Sectors
The tariff reduction is expected to positively impact textiles, leather, pharma, chemicals, gems & jewelry, electronics, and automobiles, with Delhi likely to see trade worth ₹1,000 crore. Exporters and market experts are optimistic that the move will boost Indian goods’ competitiveness in the US market, providing long-awaited relief and growth opportunities.