US Trade Deal Strengthens India’s Goal of Achieving $250 Billion Engineering Exports by 2030

New Delhi: The interim trade agreement framework between India and the United States is expected to support India’s larger objective of surpassing $120 billion in engineering exports in the financial year 2025–26, industry representatives said.

According to the Engineering Export Promotion Council of India (EEPC), the reduction in tariffs under the proposed deal will also reinforce India’s progress toward achieving $250 billion in engineering exports by 2030. Improved access to the US market is considered crucial to reaching this milestone.

“The US is the largest market for engineering goods, and EEPC India welcomes the framework for an interim trade agreement between the two countries that reduces duties and trade barriers,” the council said in a statement.

The proposed arrangement is expected to boost domestic manufacturing and provide Indian exporters, including those in the engineering sector, with better market access to the world’s largest economy.

Under the agreement, the US plans to reduce tariffs on Indian goods to 18 per cent. Additionally, India will receive a preferential tariff rate quota for automotive components, which is expected to enhance the competitiveness of India’s engineering exports in the US market.

The EEPC noted that micro, small, and medium enterprise (MSME) exporters in the engineering sector are likely to benefit significantly from the deal. The council also expressed hope that US duties imposed under Section 232 on steel, aluminium, automobiles, and auto components may be eased in the future.

“A stronger trade partnership between India and the US will benefit both countries. Once the interim agreement is finalised and followed by a comprehensive trade deal, the Indian engineering sector is expected to witness substantial export growth, contributing significantly to the target of $250 billion in engineering exports by 2030,” the council stated.

The joint statement issued by both countries has also strengthened confidence within India’s engineering sector. Industry leaders believe the agreement will help exporters regain previous buyers and attract new customers, thereby supporting sustained export growth in the coming months.

With inputs from IANS