India’s labour-intensive sectors have received a significant boost following the announcement that US tariffs on Indian goods will be reduced from 50% to 18%. Industry bodies across export-oriented sectors, ranging from shrimps to diamonds, have welcomed the move, saying it will revive stalled shipments and improve competitiveness in the crucial US market.

The cut is expected to ease cost pressures on exporters, reopen negotiations with American buyers and help restore demand that had weakened due to the punitive duties imposed earlier.

Apparel

AEPC chairman A Sakthivel said the India–US trade breakthrough is timely for a sector strained by high tariffs. The US is India’s largest apparel market, and better terms will lift competitiveness, support volumes, and improve utilisation across mills and garment units.

Seafood

Rajarshi Banerji, board member, National Managing Committee of Seafood Exporters Association of India, said the earlier 50 per cent duty, including the penal levy linked to Russian oil imports, had virtually blocked exports. The cut to 18 per cent should bring buyers and sellers back to talks and restart shipments.

Leather goods

Arjun Mukund Kulkarni, president of the Indian Leather Products Association, said the earlier 50 per cent tariff had led to a sharp decline in shipments of leather goods. The cut to 18 per cent is a major boost, improves competitiveness versus Vietnam and Indonesia, and, alongside FTAs with the UK and EU, opens scope for faster export growth for the sector.

Auto parts

ACMA president Vikrampati Singhania said lowering reciprocal tariffs to 18 per cent will strengthen Indian components’ competitiveness in the US, helping exporters regain share, secure contracts and expand supplies in a strategic market.

Gems, jewels

GJEPC chairman Kirit Bhansali said the US is India’s largest market, and lowering of tariffs reduces importer costs, aids diamond jewellery makers, lifts competitiveness, revives demand and stabilises operations.

Engineering

Pankaj Chadha, chairman EEPC, said the move is a big relief for Indian engineering exporters who were finding it hard to stay price-competitive in the US market. The move supports the goal of crossing $120bn in engineering exports in FY26 in line with EEPC India’s vision. Engineering exports to the US reached $14.68 bn in April–Dec 2025-26.