The agreement was reached five months after Washington imposed 50 per cent tariffs on Indian exports, including a 25 per cent punitive duty on India’s Russian crude oil purchases.
Industry bodies welcome the deal
Rajiv Memani, President of the
Confederation of Indian Industry (CII), said the agreement will strengthen India’s global competitiveness. “…This move will enhance the global competitiveness of Indian products while catalysing manufacturing growth, employment creation, and the development of resilient supply chains. The India-US trade deal underscores the shared commitment of India and the United States to deepen trade, technology and investment ties in an increasingly competitive global landscape...,” he added.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, "The finalisation of the
India-US trade deal is a watershed moment for our nation and a major boost for the ‘Made in India’ brand... Coming on the back of recent trade agreements with the EU and the UK, this deal reinforces India’s growing confidence and credibility on the global stage and lays the foundation for sustained growth and stronger international partnerships."
India-US trade deal: Corporate leaders see growth opportunities
Sudarshan Venu, Chairman of TVS Motor Company, highlighted how strategic trade deals help Indian industry. “…India has now secured several strategic trade deals with key economic partners around the world... We look forward to a stronger India-US partnership that accelerates growth, expands market access, and supports India’s ambition to be a globally competitive manufacturing and innovation hub.”
Dr Anish Shah, Group CEO and Managing Director of Mahindra Group, said the deal will boost business confidence. “...The immediate reduction in reciprocal tariffs on Indian exports from 50 per cent to 18 per cent, along with the commitment to progressively lower tariff and non-tariff barriers, will boost growth momentum and improve the predictability businesses need to invest with confidence. With the Indian economy on a strong growth trajectory, this deal adds meaningful momentum to India’s growth ambitions.”
Analysts see positive impact on exports, markets
Moody’s Ratings noted that the tariff cut will support India’s export growth, especially in labour-intensive sectors. “The reduction of the US tariff rate on most Indian goods will reinvigorate India’s goods export growth to the US, which remains the country’s largest goods export market, accounting for about 21 per cent of India’s total goods exports for the first eleven months of 2025. Lower tariff rate will also be credit positive for labour-intensive sectors such as gems, jewellery, textiles and apparel..."
Radhika Rao, senior economist at DBS Singapore, said the deal is positive for exports and markets. “This breakthrough is unmistakably positive for the real economy/exports, sentiment as well as financial markets, while further details are awaited. Textiles, gems and jewellery, engineering goods, leather and chemicals are likely amongst the key gainers. Domestic markets are expected to witness a relief rally at open, after high tariffs had been one of the key drags on sentiment in the past quarter.”
Trideep Bhattacharya, President and CIO at Edelweiss Asset Management, Mumbai, added: “The reduction in tariffs from around 50 per cent to 18 per cent has come in materially better than consensus expectations. When combined with the recently concluded India-EU trade agreement, this potentially represents one of the strongest external growth stimuli for the Indian economy in 2026.”
Market experts highlight equity, investment benefits
Uttam Kumar Srimal, Deputy Head of Fundamental Research at Axis Direct, said, “For equity markets, the trade deal enhances earnings' visibility, supports valuation re-rating, particularly for export-oriented and capex-linked sectors and reinforces India's positioning as a relatively safe haven among emerging markets.”
Nisha Biswal, Partner at The Asia Group, noted the broader economic significance. “...Coming on the heels of a very consequential EU-India free trade agreement, this is a big move for India as it seeks to open up its trade frontiers with the EU and the US. There are ongoing discussions with Canada, and earlier this year, we saw the India-UK deal. India is making a bold move to align economically with the West... Whether this is a sustainable agreement will depend on the determination of both governments to make it work..."
Historical perspective and geopolitical considerations
Richard Rossow, Senior Advisor at the Centre for Strategic and International Studies (CSIS), reflected on past trade tensions. “First, the US wanted India to commit to buying a certain percentage of American goods to help repair the trade deficit... For India, certain staple grains are a no-go… When the US hit India with tariffs, India too retaliated with its own tariffs in US President Donald Trump's last term... At the end of the day, India approached the US pressure with a calm head. Despite a warm relationship between the leaders, there was significant conflict on both sides.”
Lloyd Chan, Senior Currency Analyst at MUFG, added a macroeconomic view, “A significant shift in US-India trade policy has introduced a new geopolitical and macroeconomic dimension to Asia FX markets... The trade deal does offer medium-term positives for India through improved export competitiveness and reduced tariff uncertainty. However, the shift in energy procurement away from discounted Russian crude introduces challenges to import costs.”
Business leaders hail the agreement
Harsh Goenka, Chairman of RPG Enterprises, called the deal the “father of all deals.” He said on X: “First the Mother of all deals with EU, now the Father of all deals with US — great achievement by PM Modi government. Patience pays.”
Sanjiv Goenka, Founder and Chairman of RPSG Group, also praised the agreement, attributing it to strong leadership. “Anchored by PM Narendra Modi's resolute leadership, persistence and an India-first approach continue to advance India's economic interests on the global stage,” he said.
 "India-US trade deal: What industry leaders say about market access, exports")
