India-US Tariff Cut to 18%: A Big Step, But Domestic Execution is Key, Say Experts
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CNBC TV18•03-02-2026, 19:20
India-US Tariff Cut to 18%: A Big Step, But Domestic Execution is Key, Say Experts
- •The US has reduced tariffs on Indian goods from 50% to 18%, a significant de-escalation after prolonged negotiations.
- •Meera Shankar and Mukesh Aghi emphasize that while the tariff cut offers relief, India must address domestic bottlenecks to maximize export gains.
- •Labour-intensive sectors like garments, gems, and jewellery, previously hit hard by high tariffs, are expected to benefit significantly.
- •The 18% tariff rate positions India more favorably than most Asian peers, including China (34%), though major US partners like the UK (10%) and EU (15%) have lower rates.
- •Experts caution that a competitive advantage is not automatic; India needs to improve its ease of doing business and logistics to fully capitalize on the reduced tariffs.
Why It Matters: India-US tariff cut is a major trade breakthrough, but India's domestic reforms are crucial for sustained export growth.
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