【India】India–US Trade Deal Comes as Boon for MSME Sector: CAIT

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Editor’s Note

This report highlights the Confederation of All India Traders’ positive outlook on new business opportunities for India’s MSME sector following the conclusion of the first phase of a trade deal with the United States.

India–US trade deal comes as boon for MSME sector: CAIT
Trade Deal Finalized

The Confederation of All India Traders (CAIT) said on Sunday that the Micro, Small, and Medium Enterprises (MSME) sector of India sees greater opportunities of business in the American market with the finalization of the first tranche of the India-US trade deal.

“This trade deal reached under the visionary and decisive leadership of Prime Minister Narendra Modi marks a major milestone in India’s journey towards becoming a global economic powerhouse comes as a boon for the MSME sector. This agreement reflects India’s growing stature as a confident, competitive and reliable trade partner on the world stage,” a CAIT statement said.
Key Beneficiary Sectors

CAIT Secretary General Praveen Khandelwal said that the trade deal will significantly benefit several key Indian sectors, including textiles and apparel, leather and footwear, gems and jewellery, generic pharmaceuticals, automobile and aircraft components, chemicals, plastics and rubber products, home decor, handicrafts and select engineering goods.

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Improved market access and tariff rationalization will enhance India’s export competitiveness in the world’s largest economy, he added.

Boost for MSMEs and National Initiatives

He also said that most importantly, the agreement provides a strong and timely boost to the MSME sector, which forms the backbone of India’s economy.

“By opening up larger export opportunities, the deal will enable MSMEs to scale up production, expand globally and generate substantial employment, especially for youth and women.”
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It will also strengthen the “Make in India” initiative by integrating Indian enterprises more deeply into global value chains, Khandelwal added.

Safeguarding National Interests
“At the same time, the agreement safeguards India’s core national interests, particularly in sensitive agricultural and rural sectors, underscoring the Indian government’s balanced and farmer-centric trade approach,” the CAIT Secretary General said.
“Overall, the India–US trade deal is a forward-looking initiative that will accelerate exports, promote entrepreneurship and reinforce India’s path towards ‘Atmanirbhar Bharat’ and ‘Viksit Bharat’,” Khandelwal added.
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⏰ Published on: February 08, 2026