Union Home Minister Amit Shah on Monday said the newly announced trade deal between India and the United States will elevate the strategic partnership between the two countries and pave the way for stronger trade ties and mutual growth.
In a post on social media platform X, Shah said the agreement marks a significant moment in India-US relations, with business between the two nations set to expand further. He noted that the deal, which includes a reduction in reciprocal tariffs, will benefit both countries and their people.
Calling it a “big day” for bilateral ties, Shah said the trade deal has been locked with a significantly reduced tariff of 18 per cent, creating fresh opportunities for economic cooperation. He also congratulated Prime Minister Narendra Modi and US President Donald Trump on what he described as a historic agreement.
According to Shah, the agreement will strengthen the strategic partnership between the two democracies and support growth on both sides. He added that trade and business activity between India and the US is expected to flourish in the coming period.
Modi welcomes reduced tariffs on Indian goods
Prime Minister Narendra Modi also welcomed the development, saying he was delighted that tariffs on “Made in India” products would now be reduced to 18 per cent. He thanked President Trump for the announcement and said the move would benefit the people of both nations.
Modi said cooperation between two large economies and the world’s largest democracies creates opportunities for mutually beneficial growth. He added that such collaboration helps unlock new possibilities for trade and development.
The prime minister also said he looked forward to working closely with the US president to take the bilateral partnership to unprecedented heights.
Trump outlines terms of the agreement
US President Donald Trump said the United States agreed to lower the reciprocal tariff on Indian goods from 25 per cent to 18 per cent following a phone conversation with Prime Minister Modi. He added that India would move forward to reduce tariffs and non-tariff barriers against the US.
Trump said New Delhi had also committed to purchasing American goods at a much higher level, including energy, technology, agricultural products, coal and other items. He mentioned that India would buy US energy worth more than USD 500 billion.
The US president said the relationship between the two countries would become even stronger going forward. He also noted that the two leaders discussed the ongoing war between Russia and Ukraine during their conversation.
Background to the trade talks
India and the US had agreed earlier to finalise the first tranche of a bilateral trade agreement, but negotiations had slowed after higher tariffs were imposed on Indian goods. The latest agreement follows several rounds of talks between the two sides.
Officials said India now faces lower tariffs compared to several competing export economies, which could provide an advantage to Indian exporters in the US market.