US trade deal strengthens India’s push for $250 billion engineering exports by 2030: EEPC

The interim India-US trade deal framework is expected to support India’s broader ambition of crossing $120 billion in engineering exports in FY2025-26, according to industry estimates.

EEPC sees path to $250 billion engineering exports by 2030

The Engineering Export Promotion Council of India (EEPC) said the proposed tariff reductions would also strengthen India’s journey toward achieving $250 billion in engineering exports by 2030, noting that improved access to the US market is critical to reaching this milestone.

Improved US market access key for Indian exporters

“The US being the largest market for engineering goods, EEPC India welcomes the release of a framework for an interim deal between the two countries, which reduces duties and trade barriers,” the council said in a statement.

The council added that the agreement would encourage local manufacturing and expand market access for Indian engineering exporters in the world’s largest economy.

Tariff cuts and preferential access for auto components

Under the proposed framework, the US will cut tariffs on Indian goods to 18 per cent, while India will receive a preferential tariff-rate quota for automotive parts.

MSME exporters likely to be major beneficiaries

These measures are expected to help Indian engineering exporters regain competitiveness in the US market, with MSME exporters likely to be among the biggest beneficiaries.

Hope for relief on Section 232 duties

EEPC India also expressed hope that duties imposed by the US under Section 232 on steel, aluminium, automobiles and auto components would ease in the future.

Stronger trade ties could drive export growth: EEPC

“A deeper trade partnership with the US bodes well for both sides. Once an interim deal is signed and a comprehensive agreement follows, the Indian engineering sector could see much stronger export growth. It will significantly contribute towards achieving the engineering exports target of $250 billion by 2030,” the council said.

Trade deal lifts confidence across engineering sector

The US-India joint statement has boosted confidence across the engineering sector, with the trade deal expected to help exporters regain old buyers, attract new customers and drive stronger export growth in the months ahead.

India-US Interim Trade Agreement

India and the United States have unveiled an Interim Trade Agreement framework that marks a significant step toward a comprehensive Bilateral Trade Agreement (BTA). The framework is aimed at deepening economic ties, boosting bilateral trade, strengthening supply chains, and generating employment in both countries, while ensuring that sensitive sectors—particularly agriculture—remain protected.

With agency inputs