India-US Trade Deal: Industry leaders welcome Modi-Trump trade agreement
Written by admin on February 2, 2026
India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18% from the current 25%, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi. The prime minister said he was delighted that “Made in India products will now have a reduced tariff of 18 per cent”.
“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said.
The prime minister said that when two large economies and the world’s largest democracies work together, it benefits the people and “unlocks immense opportunities for mutually beneficial cooperation”. “President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace,” he said on ‘X’.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, welcomed the trade announcement by Prime Minister Narendra Modi and US President Donald Trump, saying the reduced tariffs will strengthen strategic and economic ties between the two countries.
“The Aditya Birla Group is the largest Indian investor in the U.S., and we see this agreement help shape more resilient supply chains, unlock manufacturing opportunities and drive long-term economic competitiveness in both the U.S. and India. We are committed to expanding our presence and investments in the U.S., where we see substantial opportunities for innovation, growth and enduring partnerships,” he added.
Also Read: India now faces the lowest US tariffs among all EMs
Harsh Goenka, Chairman of RPG Enterprises, applauded the Modi government for its trade achievements, saying, “First the Mother of all deals with EU, now the Father of all deals with US – great achievement by PM Modi government! Patience pays.
Anant Goenka, FICCI President and Vice Chairman of the RPG Group, said, “The announcement by Prime Minister Narendra Modi and President Donald Trump of a trade deal signals renewed momentum in India–US economic engagement.
The reduction of US tariffs on Indian goods to 18% will significantly enhance the competitiveness of Indian exports in the world’s largest import market. Labour-intensive sectors such as apparel, leather, gems and jewellery and marine products stand to benefit, strengthening business confidence and creating fresh opportunities for export-led growth.”
Union Minister Ashwini Vaishnaw said the India-US trade agreement is a win-win deal which will benefit citizens and industries of both countries. In a post on X, Vaishnaw, the Union minister for information and broadcasting, said, “Trade deal between the US and India will lead to a brighter future for both countries.” “India-US trade deal is a win-win deal. Citizens and industries of both countries will benefit greatly from this deal,” he said.
Terming the US and India as the world’s largest democracies and natural allies, the minister said, “Together, India and the US have huge potential to work for peace and development.” “The US and India have complementary strengths. Both countries can co-create technologies and co-develop solutions that will benefit the world,” Vaishnaw added.
Union Minister of Commerce and Industry, Piyush Goyal, congratulated Prime Minister Narendra Modi and US President Donald Trump on the landmark trade agreement, saying it shows “the power of two like-minded, fair-trading democracies working together for shared prosperity.”
He expressed gratitude for the “visionary and decisive leadership” of Modi and Trump and their strong commitment to strengthening India–U.S. ties. Goyal added that the deal “unlocks the power of two large democracies working together for the shared prosperity of their people,” noting that India and the US are natural allies whose partnership will “co-create technologies, co-develop solutions, and work together for peace, growth, and a brighter future for India and US.”
Also Read: GIFT Nifty surges nearly 800 points after India-US agree to trade deal
EEPC India welcomed the announcement of a trade deal with the US under which Washington will lower reciprocal tariffs on Indian goods to 18% from the current 25%, and said it could significantly boost engineering shipments.
Ambassador of India to the USA, Vinay Mohan Kwatra, described the deal as “a big WIN for a consequential partnership under the leadership of Prime Minister Narendra Modi and President Donald Trump. India and the USA announce a trade deal creating vast new opportunities for the two economies and the people of our two great nations. Today’s announcements herald an exciting new phase in our partnership.”
The US-India Strategic Partnership Forum (USISPF) also welcomed the development, noting that the agreement, under which Washington will reduce the reciprocal tariff on Indian goods from 25% to 18%, marks “an important and positive first step.” The forum said the announcement signals strong political will on both sides to move toward a comprehensive US–India Bilateral Trade Agreement (BTA) addressing tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors.
