US President Donald Trump on Monday announced the highly anticipated trade deal with India that lowers reciprocal tariffs and promises expanded market access, while also claiming that New Delhi would halt purchases of Russian oil and ramp up imports of American goods.
The announcement followed a phone call between Trump and Prime Minister Narendra Modi, ending nearly a year of tense negotiations that had strained bilateral ties and left India facing some of the highest US tariffs globally.
Prime Minister Narendra Modi said Indian exports to the US will now face a reduced tariff of 18%, replacing the earlier 25% reciprocal tariff.
In a social media post, Modi welcomed the development, saying: “Delighted that Made in India products will now have a reduced tariff of 18%.” He added, “Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
BJP leaders hail ‘historic’ breakthrough
Union commerce and industry minister Piyush Goyal said the agreement will create new opportunities for farmers, MSMEs, entrepreneurs and skilled workers.
In a post on X, Goyal said the deal would help India access advanced US technology and accelerate the country’s journey towards Viksit Bharat 2047. Congratulating both leaders, he said the agreement reflects “the power of two like-minded, fair-trading democracies working together for shared prosperity.”
{{/usCountry}}In a post on X, Goyal said the deal would help India access advanced US technology and accelerate the country’s journey towards Viksit Bharat 2047. Congratulating both leaders, he said the agreement reflects “the power of two like-minded, fair-trading democracies working together for shared prosperity.”
{{/usCountry}}External affairs minister S Jaishankar, defence minister Rajnath Singh and finance minister Nirmala Sitharaman also joined the Prime Minister in welcoming the deal.
BJP MP Bansuri Swaraj, earlier this morning said in a post on X, the tariff reduction would expand market access, create jobs and spur innovation, calling economic cooperation the “firm foundation” of the India–US strategic relationship.
BJP MP Baijayant Jay Panda told PTI that breakthrough was "historic”, saying it would redefine trade between the world’s two largest democracies and have a stabilising impact on global trade and geopolitics.
Congress, Opposition flag losses and sovereignty concerns
Opposition leaders, however, questioned the timing and broader implications of the agreement.
Congress MP Hibi Eden said the tariff cut had come too late for India’s marine exports sector. “When a 50 per cent tariff was imposed, seafood exporters were pushed into crisis and forced to look for alternative markets,” he said, adding that the US market for marine products had already been “severely damaged,” reported news agency PTI.
Shiv Sena (UBT) MP Priyanka Chaturvedi said while lowering tariffs was necessary, the concessions made by India raised serious concerns. “What has come from Trump’s side doesn’t seem like a win-win situation at all,” she said, pointing to commitments on oil imports and agricultural market access, reported news agency ANI.
Congress leader Udit Raj questioned whether India was ceding decision-making autonomy to Washington. Referring to Trump’s statements, he asked if the US President would now “decide everything for us,” including oil purchases and tariffs, reported PTI.
SP MP Rajeev Rai said the deal offered relief to exporters but blamed a “misguided foreign policy” for the chaos faced by businesses burdened with loans. He criticised what he described as attempts to please multiple global powers at the cost of national interest, reported ANI.
Congress MP Jebi Mather also raised concerns over sovereignty and transparency, saying tariff and ceasefire announcements appeared to be coming first from President Trump. She said Parliament must debate both the EU and US trade agreements, warning of implications for farmers, market security and national interest, reported PTI.
NDA MPs felicitate PM Modi
Meanwhile, NDA MPs felicitated PM Modi for the India-US trade agreement, at NDA Parliamentary party meeting in Parliament premises.
(with PTI, ANI inputs)