Interview | ‘Clear visibility for fresh investments, capacity addition’: Aqeel Panaruna

Florence Shoe Company chairman Aqeel Panaruna tells TOI that the US trade deal is a turning point and is moving ahead with plans for a JV with a foreign player.

Life before and after tariffs

Earlier, Indian exports to the US were burdened with very high tariffs, up to 50% in certain product categories, which severely impacted competitiveness, volumes and buyer confidence. Many US customers were hesitant to place long-term orders, despite India’s strong manufacturing capability.

With this agreement, the expected tariff rationalisation will immediately improve cost competitiveness, enable Indian manufacturers to regain lost market share, and encourage US buyers to commit to longer-term sourcing partnerships. For us, this creates clear visibility for capacity expansion, new product lines and fresh investments, including our Rs 2,500-crore Taiwanese joint venture. Additional investments that were earlier on hold will now be actively reconsidered.

Impact of other deals

The trade agreements with the EU, UK, EFTA, and now the US together create a well-balanced and resilient export ecosystem for Indian industry. Covid-19 disruptions and prolonged tariff uncertainty taught us 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. Europe remains strong for value and design-led products, the UK offers continuity, EFTA opens premium markets and the US brings scale and innovation.

What next

A few structural challenges remain. First is cost competitiveness. Second is speed and scale of infrastructure. Addressing these will help India not only benefit from trade agreements but fully capitalise on them as a trusted global manufacturing hub, while supporting job growth.