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Textiles and Jewellery traders have welcomed the India-US trade deal, expressing enthusiasm over reduced tariffs and predicting that an 18 per cent tariff will increase sales by 100-150 per cent.
Hailing PM Modi for the trade deal, traders believed that Free Trade Agreements with other countries, especially with the European Union, "scared" the Trump administration into making the deal. Speaking with ANI, All Gujarat Textile Federation President, Ashok Jirawala, said, "I believe this is the magic of PM Modi's government. I believe Trump's government has got scared of losing the market because of all the deals we have closed with other countries. I believe more tariffs will be reduced in the upcoming days. The US is our biggest market in the garment industry, curtains, bedsheets and special fabrics. Their consumers were also demanding this. Ranganath Sharda, Secretary, Ashoka Market, a Textile and Garment Exporter, believes that, as India's tariffs are lower than those of China, Pakistan, and Bangladesh, Indian traders will benefit greatly from this arrangement. "This is a big decision. Our exports have somehow halted, but now we believe that due to 18 per cent tariffs, our exports will double or triple. We export Rs25,000 crores that will surely now go to 50,000 crores to 75,000 crores. "Now the US tariffs on India have become the lowest as compared to China, Bangladesh, and Pakistan. I think this is largely due to the India-EU trade deal. I think this will benefit the textile business a lot. If Pakistan and China tariffs remain high, it will benefit India's exporters. We believe our sales will increase from 100 per cent to 150 per cent," Ranganath Sharda added. Gujarat State President of the Indian Bullion and Jewellers Association, Nainesh Pachigar, also expressed enthusiasm about the reduction in tariffs and believes they will soon come down to zero. "Our whole industry welcomes this trade deal. America has to bow down. Now they called our PM and agreed to reduce tariffs. Our industry will benefit from this reduction to 18 per cent of tariffs. We want the tariff to be zero per cent. Our export was at 35 per cent with the US, but that stopped due to tariffs; now it will start again. If tariffs come to zero, the export will be at 35 per cent again," he said. The India-US trade deal was agreed upon on 2ND February after successful talks between the leadership of both countries. Following the announcement by US President Donald Trump and Prime Minister Narendra Modi on February 2, the reciprocal tariff imposed by the US on India was reduced to 18 per cent from 25 per cen In addition, the US removed the additional 25 per cent punitive levy that had been linked to India's purchase of Russian oil. The move is expected to ease trade pressures and improve the overall business environment between the two countries. The announcement has been seen as a positive step by industry leaders, with expectations that the agreement will boost investor confidence, enhance manufacturing cooperation, and further strengthen India-US economic relations. (ANI)
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