The World MSME Forum has welcomed the newly proposed IndiandashUSA trade agreement, under which reciprocal tariffs on Indian goods exported to the United States are proposed to be brought down to an effective level of 18. The Forum termed this move as a major relief for Indian exporters, particularly MSMEs, who have been under severe pressure due to the earlier tariff burden of up to 56 imposed by the U.S. on several Indian product categories. Over the past period, Indian exporters faced serious challenges as elevated U.S. tariffs mdash touching 56 in certain product lines mdash sharply eroded price competitiveness of Indian goods. This led to  Loss of export orders  Margin compression  Shift of U.S. buyers towards competing countries  Stress on labour-intensive MSME sectors such as textiles, gems amp jewellery, engineering goods and marine products The high tariff regime made Indian products significantly costlier in the U.S. market despite their quality and reliability. The United States is Indiarsquos largest export destination, accounting for nearly 18 of Indiarsquos total merchandise exports. In FY 2024ndash25, Indiarsquos exports to the USA stood at approximately USD 86.5 billion, underlining the strategic importance of the U.S. market for Indian industry and MSMEs. The following are the top 10 export products from India to the United States, which will directly benefit from tariff rationalisation under the proposed agreement 1. Electrical amp Electronic Equipment ndash approx. USD 15.9 billion 2. Gems amp Jewellery (Pearls, Precious Stones amp Metals) ndash approx. USD 9.97 billion 3. Pharmaceutical Products ndash approx. USD 9.78 billion 4. Machinery amp Mechanical Appliances ndash approx. USD 6.69 billion 5. Mineral Fuels amp Petroleum Products ndash approx. USD 4.2 billion 6. Iron amp Steel Articles and Metal Products ndash approx. USD 2.7 billion 7. Textiles amp Apparel (Garments and Fabrics) ndash approx. USD 2.5ndash2.8 billion 8. Organic Chemicals ndash approx. USD 2.55 billion 9. Automobiles amp Auto Components (Non-Railway Vehicles) ndash approx. USD 2.58 billion 10. Marine amp Seafood Products ndash approx. USD 1.9 billion These sectors are largely MSME-driven, employment-intensive and spread across major industrial clusters in Punjab, Gujarat, Maharashtra, Tamil Nadu, Uttar Pradesh and other states. The World MSME Forum highlighted that the proposed 18 tariff structure will  Restore price competitiveness of Indian goods in the U.S. market  Due to lower tariff the Indian Exporters can easily compete China and Bangladesh in USA.  Help regain lost export orders  Encourage long-term sourcing contracts from U.S. buyers  Support employment generation in MSME clusters  Strengthen Indiarsquos position as a reliable global supply-chain partner ldquoThe proposed reduction of tariffs to 18 is a game-changer for Indian exporters. MSMEs were bearing the brunt of the 56 tariff regime, which severely impacted competitiveness and order flows. This agreement opens fresh opportunities, restores confidence among U.S. buyers, and will significantly boost Indiarsquos export growth.rdquo Forum expects this agreement to revive stressed export sectors, attract new investments, and deepen IndiandashUSA economic cooperation in the coming year. The World MSME Forum urges swift operationalisation of the agreement and continued engagement with stakeholders to ensure maximum benefit for Indian exporters. The Forum reaffirmed its commitment to working with the Government and industry bodies to help MSMEs leverage the full potential of the U.S. market.

World Msme Forum Welcomes Proposed India usa Trade Agreement With 18 Tariff Relief