The industry sector today hailed the trade deal announced by the governments of India and the United States, saying it would reduce trade barriers and strengthen bilateral economic cooperation.Industry leaders said the deal would boost key Indian exports.Rajeev Juneja President, PHD Chamber of Commerce, said that under the terms of the interim agreement, the United States would apply a reciprocal tariff rate of 18 per cent on Indian-origin goods, which included textiles, apparel, leather and footwear, plastics, rubber, organic chemicals, home décor, artisanal products and certain machinery.”Tariffs on specific Indian export categories — notably generic pharmaceuticals, gems and diamonds, and aircraft parts — are scheduled for removal, contingent on successful implementation and finalisation of the interim agreement,” he said.The United States would also lift certain national security-related tariffs previously applied on Indian aircraft and aircraft parts under steel, aluminium and copper measures, the industry chamber added.Based on the announced tariff adjustments, the industry said the following Indian sectors were expected to see positive trade effects:–Pharmaceuticals (Generic Drugs) by way of reduced tariff barriers will improve access to the US market for Indian generic drug manufacturers;-Gems and jewellery sector is expected to support exports from India’s cutting and polishing industry, improving margins and export volumes;-Aviation and Aircraft Components segment will get a boost by removal of tariffs on aircraft and aircraft parts. This will benefit India’s emerging aerospace manufacturing, maintenance, repair and overhaul (MRO), and component supply ecosystem.- In textiles and apparel, the application of a lower reciprocal tariff rate will enhance competitiveness for Indian textile and garment exporters in the US market, particularly in labour-intensive segments.- Engineering goods and machinery will see reduced trade friction supports exports of industrial machinery, auto components, and fabricated metal products.- Under the chemicals and plastics sector, organic chemicals, plastics, and rubber products will benefit from improved price competitiveness and expanded market access.- Handicrafts and home décor goods are expected to gain from improved tariff treatment and stable access to the US consumer market.”The joint statement accompanying the agreement highlights that the implementation of these tariff measures will commence promptly, with detailed operational guidelines to be issued by the competent authorities. Both sides have reaffirmed their commitment to pursue a full bilateral trade agreement that encompasses goods, services, digital trade, investment cooperation and supply chain resilience, he added.This interim tariff agreement marks a significant development in US-India trade relations, potentially expanding market access for exporters in both countries and providing a stable and comprehensive trade framework,” said Ranjeet Mehta, CEO and Secretary General, PHDCCI.