Interview: Aqeel Panaruna on the US Trade Deal and its Impact on Indian Manufacturing
'Clear visibility for fresh investments, capacity addition': Aqeel Panaruna
Aqeel Panaruna, the chairman of Florence Shoe Company, is optimistic about the future of Indian manufacturing. In an exclusive interview, he discusses the impact of the US trade deal and how it will benefit Indian companies. Panaruna believes that the deal is a turning point, offering clear visibility for fresh investments and capacity addition.
Life before and after tariffs
Before the US trade deal, Indian exports to the US were burdened with high tariffs, up to 50% in certain product categories. This severely impacted competitiveness, volumes, and buyer confidence. Despite India's strong manufacturing capability, many US customers were hesitant to place long-term orders. With the expected tariff rationalisation, the cost competitiveness of Indian manufacturers will improve, enabling them to regain lost market share and encourage US buyers to commit to longer-term sourcing partnerships.
Impact of other deals
The trade agreements with the EU, UK, EFTA, and now the US, create a well-balanced and resilient export ecosystem for Indian industry. Panaruna notes that Covid-19 disruptions and prolonged tariff uncertainty taught an important lesson: over-dependence on a single market is risky. The clear takeaway is to balance trade through diversification.
Our strategy is not dependence, but portfolio balance
Panaruna explains that Europe remains strong for value and design-led products, the UK offers continuity, EFTA opens premium markets, and the US brings scale and innovation. However, a few structural challenges remain, such as cost competitiveness and the speed and scale of infrastructure.
What's next?
Addressing these challenges will help India not only benefit from trade agreements but also fully capitalise on them as a trusted global manufacturing hub, while supporting job growth. Panaruna is confident that with the right strategies and investments, Indian manufacturing will thrive in the global market.
