India and the United States have agreed to a trade arrangement under which Washington will reduce reciprocal tariffs on Indian goods from 25% to 18%, US President Donald Trump announced on Monday following a phone call with Prime Minister Narendra Modi.
Welcoming the move, PM Modi said he was “delighted that Made in India products will now have a reduced tariff of 18 per cent.
Here are a few reactions following the announcement:
External Affairs Minister S Jaishankar welcomed the announcement, saying the agreement would create jobs, boost growth, and promote innovation in both economies.
Welcome the announcements on bilateral trade following the conversation between PM @narendramodi and President @realDonaldTrump.
This will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavors and encourage trusted…
— Dr. S. Jaishankar (@DrSJaishankar) February 2, 2026
“Welcome the announcements on bilateral trade following the conversation between PM Narendra Modi and President Donald Trump. This will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavours and encourage trusted technology ties. The opportunities in our economic engagement are truly vast and we are confident of realizing them. A robust economic relationship is the strongest foundation for our strategic partnership,” Jaishankar tweeted.
The US-India Strategic Partnership Forum (USISPF) described the deal as “an important and positive first step.”
“While the agreement’s specifics are pending, today’s announcement signals strong political will on both sides to move toward a comprehensive US–India Bilateral Trade Agreement (BTA) that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors,” USISPF said.
Union Minister Piyush Goyal hailed the landmark trade announcement between India and the United States, describing it as a historic moment that will strengthen bilateral ties and create opportunities for Indian businesses and workers.
Congratulations to Prime Minister @NarendraModi ji and President @RealDonaldTrump, as well as to the people of India and the United States, on the landmark trade agreement. This reflects the power of two like-minded, fair-trading democracies working together for shared…
— Piyush Goyal (@PiyushGoyal) February 2, 2026
In a post on X, Goyal said, “Congratulations to Prime Minister Narendra Modi ji and President Donald Trump, as well as to the people of India and the United States, on the landmark trade agreement. This reflects the power of two like-minded, fair-trading democracies working together for shared prosperity.”
He added that the agreement highlights the “visionary and decisive leadership” of Modi and Trump and their commitment to deepening India–US relations.
“Both India and the US are natural allies, and our partnership will co-create technologies, co-develop solutions, and work together for peace, growth, and a brighter future for India and US,” Goyal said.
The minister noted that the deal will unlock “unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, Design in India for the world, and Innovate in India for the world,” while also facilitating technology transfer from the United States.
“This is not just a trade deal – it is a historic turning point that will reshape India–U.S. relations and accelerate our journey towards Viksit Bharat 2047,” he added.
Union Minister Ashwini Vaishnaw hailed the agreement as a “win-win deal” for both countries.
In a tweet, he said the United States and India, as the world’s largest democracies, are natural allies with “huge potential to work for peace and development.”
US and India are world’s largest democracies. Both countries are natural allies. Together, India and US have huge potential to work for peace and development.
US and India have complementary strengths. Both countries can co-create technologies and co-develop solutions that will…
— Ashwini Vaishnaw (@AshwiniVaishnaw) February 2, 2026
He added that the two nations’ complementary strengths would allow them to “co-create technologies and co-develop solutions that will benefit the world.”
Vaishnaw said the trade deal would secure a “brighter future” for citizens and industries in both countries.
Ashish Chauhan, MD & CEO of the National Stock Exchange of India, said that it was a big win for businesses, supply chains, and the India–US partnership.
Ashish Chauhan, MD & CEO of the National Stock Exchange of India tweets, “Welcome move for global trade! Congratulations! After today evening’s talks between the US President Mr DonaldTrump and the Indian Prime Minister Shri Narendra Modi, tariffs on Indian goods coming down… pic.twitter.com/WTvQnnUpcM
— ANI (@ANI) February 2, 2026
“Welcome move for global trade! Congratulations! After today evening’s talks between the US President Mr DonaldTrump and the Indian Prime Minister Shri Narendra Modi, tariffs on Indian goods coming down sharply from 50% to 18% with immediate effect. A big win for businesses, supply chains, and the India–US partnership. Kudos to the teams involved in bringing this historic deal to a close,” Chauhan tweeted.
Union Home Minister Amit Shah welcomed the India–US trade agreement, calling it “a big day for India-US relations.”
A big day for India-US relations as the trade deal has been locked with a significantly reduced tariff of 18%, paving the way for stronger trade ties and mutual growth.
I congratulate PM @narendramodi and President @realDonaldTrump for this historic deal, which will elevate our…
— Amit Shah (@AmitShah) February 2, 2026
In a tweet, he said the deal, which reduces reciprocal tariffs on Indian goods to 18%, would strengthen trade ties and promote “mutual growth.”
Shah congratulated Prime Minister Narendra Modi and US President Donald Trump for the “historic deal,” adding that it would elevate the strategic partnership between the two nations and benefit their citizens.
He further noted that business between India and the US is “set to flourish further” as a result of the agreement.
BJP National President Nitin Nabin called the new development in India-US relations commendable.
भारत-अमेरिका संबंधों में हुई ये नई प्रगति अभिनंदनीय है।
माननीय प्रधानमंत्री जी को बधाई। उनके कुशल नेतृत्व में भारत में युवाओं के लिए नित नएअवसरों के द्वार खुल रहे हैं।भारत और अमेरिका, यानि दुनिया के दो सशक्त लोकतंत्र के बीच प्रगाढ़ होते संबंधों का प्रभाव बहुत ही सकारात्मक और…
— Nitin Nabin (@NitinNabin) February 2, 2026
“This new development in India-US relations is commendable. Congratulations to the Honorable Prime Minister. Under his able leadership, new opportunities are opening up for the youth of India. The strengthening ties between the world’s two most powerful democracies, India and the United States, will have a very positive and far-reaching impact. This decision will give new momentum to the progress of the Indian economy. It will also give new impetus to the Aatmanirbhar Bharat and Make in India initiatives,” he tweeted.
EEPC India said the deal could significantly boost engineering shipments.
“While the detailed contours of the agreement are yet to be made public, the Prime Minister’s message clearly mentioned lower tariffs for Made in India products, which is very good news,” EEPC said in a statement, adding that the US remains India’s largest trading partner.
“The tariff boost should help the engineering industry end the year on a strong note, and also lay the foundation for a much better 2026-27 in terms of global exports,” the statement added.
Foreign trade expert Robinder Sachdev described the development as a significant win for the Indian economy and employment.
Speaking on the impact of the tariff reduction, Sachdev noted that “every 1% tariff on India translates to a loss of exports worth $1 billion, which equates to about 1 lakh jobs. Had the previous 50% tariffs continued for a year, India could have lost exports worth $50 billion and at least 35 lakh jobs.”
He added that the agreement provides “predictability and stability for US-India trade and strategic relations going forward,” calling the development “great news for many households in India.”
With inputs from agencies
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