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India’s Commerce Minister Piyush Goyal described the newly announced India–US trade deal as a historic transformation in bilateral relations, not just a routine trade agreement. Following talks between Prime Minister Narendra Modi and US President Donald Trump, reciprocal tariffs on Indian goods will be reduced.
Trump Announces India-US Trade Agreement, Cuts Tariffs on Indian Goods
New Delhi: There is an atmosphere of excitement in both countries regarding the newly announced trade deal between India and the United States. US President Donald Trump announced on Monday that a significant trade agreement has been finalized between India and the United States. Under this agreement, the US will reduce reciprocal tariffs on products imported from India from 25 percent to 18 percent. President Trump made this announcement after a phone conversation with Prime Minister Narendra Modi.
Commerce and Industry Minister Piyush Goyal called the deal a historic turning point in India-US relations. He congratulated Prime Minister Narendra Modi and President Donald Trump for this achievement. Posting on the social media platform 'X', Goyal said that this agreement demonstrates the potential for shared prosperity between two like-minded democracies.
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
Goyal said that this deal is not limited to trade alone, but provides an opportunity to share technology, develop new solutions, and work together for peace and development. He stated that this agreement will open up new opportunities for farmers, small and medium enterprises (MSMEs), entrepreneurs, and skilled workers. It will also strengthen "Make in India, Design in India, and Innovate in India."
US Cuts Tariffs on Indian Goods from 25% to 18% After Trump–Modi Talks
The Union Minister also stated that this agreement will help India achieve its goal of becoming a developed nation by 2047. It will provide better access to modern technology from the United States, enhancing India's industrial and innovation capabilities.
Union Railway Minister Ashwini Vaishnaw described this as a "win-win deal" for both India and the United States. He said that India and the United States are the world's largest democracies and natural allies. This agreement will enhance technological cooperation and develop solutions that will prove useful globally.
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
The US-India Strategic Partnership Forum (USISPF) also welcomed this deal. The forum said the announcement reflects the two countries' commitment to further strengthen their economic partnership and advance the bilateral trade agreement.
National Stock Exchange MD and CEO Ashish Chauhan called it a positive step for global trade. He said the reduction in tariffs on Indian goods will significantly benefit the supply chain, industry, and the India-US partnership. He called it a major victory in the areas of trade and technology.
