New Delhi, Feb 4: Union Home Minister Amit Shah on Monday said the trade deal between India and the United States would elevate the strategic partnership between the two countries, paving the way for stronger trade ties and mutual growth.
In a post on X, Shah said the agreement would greatly benefit both nations and their people, with business between India and the US set to flourish further.
“A big day for India–US relations as the trade deal has been locked with a significantly reduced tariff of 18 per cent, paving the way for stronger trade ties and mutual growth,” he said.
Congratulating Prime Minister Narendra Modi and US President Donald Trump on the “historic deal”, Shah said it would “elevate our strategic partnership and greatly benefit both nations and their people”.
India and the US have agreed to a trade deal under which Washington will reduce reciprocal tariffs on Indian goods to 18 per cent from the current 25 per cent, President Trump said on Monday after a phone conversation with Prime Minister Modi.
Prime Minister Modi 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 when two large economies and the world’s largest democracies work together, it benefits 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 in another post on X.
Modi said he looked forward to working closely with Trump to take the bilateral partnership to unprecedented heights.
President Trump, in a post on his social media platform Truth Social, said India would move forward to reduce “tariffs and non-tariff barriers” against the US to zero and would buy American goods, including energy, worth more than USD 500 billion.
“Out of friendship and respect for Prime Minister Modi, and as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25 per cent to 18 per cent,” Trump said.
He added that India would also significantly increase its purchases of American energy, technology, agricultural products, coal and other goods.
“Our amazing relationship with India will be even stronger going forward,” Trump said.
The two leaders also discussed efforts to end the Russia–Ukraine war, with Trump claiming that Modi agreed to stop buying Russian oil and increase purchases from the US.
Prime Minister Modi and President Trump last spoke by phone in October 2025. They had agreed at a meeting in February last year to finalise the first tranche of a bilateral trade agreement by autumn.
However, progress had stalled after President Trump imposed steep tariffs on Indian goods, including punitive duties linked to India’s purchase of Russian crude oil. Talks gained momentum again amid renewed diplomatic engagement, including External Affairs Minister S. Jaishankar’s visit to Washington on Monday.
Official sources said India now enjoys lower tariffs compared to several competing export economies, citing US tariffs of 19 per cent on Indonesia, 20 per cent on Vietnam and Bangladesh, and 34 per cent on China. They added that India and the US have made “very significant” progress in trade negotiations. (Agencies)
