New York | The US-India Strategic Partnership Forum (USISPF) have welcomed President Donald Trump's announcement to bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, describing it as "an important and positive first step."
India and the US agreed on a trade deal under which Washington will bring down the reciprocal tariff on Indian goods, US President Donald Trump announced on Monday in a Truth Social post after a conversation with Prime Minister Narendra Modi.
"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.
A BTA between the two nations would deliver meaningful benefits for businesses, workers, and consumers in both countries, while strengthening supply chains and economic resilience, it added.
Both governments have made clear that this is only the beginning, with additional phases and negotiations anticipated in the months ahead.
"USISPF is encouraged by the constructive momentum generated by this announcement and remains optimistic about the scope and ambition of what lies ahead," it added.
It reiterated full commitment to working closely with both the Government of India and the US Government to advance the shared objective of expanding bilateral trade toward the USD 500 billion target.
A stronger US - India trade and investment relationship is not only critical to both economies but also central to advancing a stable, resilient, and rules-based Indo-Pacific, it said.
Indian Ambassador to the US Vinay Kwatra termed the trade deal a "big win" that creates vast new opportunities for the two economies.
"A big WIN for a consequential partnership under the leadership of Prime Minister Narendra Modi @narendramodi and President Donald Trump @POTUS," Kwatra said in a post on X.
He said that the deal will create "new opportunities for the two economies and the people of our two great nations. Today's announcements herald an exciting new phase in our partnership." Top American executives also welcomed the US-India trade deal, saying it will pave the way for a much bigger economic partnership between the two countries.
Nisha Biswal, Partner at The Asia Group, said, "The long-awaited US-India trade deal that was announced this morning by President Trump and Prime Minister Modi will pave the way for a much bigger economic partnership between our two countries." Biswal said that while this is still a phase 1 agreement, it creates the pathway for negotiations on a more comprehensive agreement, akin to the EU-India agreement announced last week. The two deals combined will transform India's global trade and economy.
Aman Raj Khanna at the Asia Group said, "The timely resolution provides much-needed relief to exporters on both sides who have weathered significant uncertainty in the intervening months, and creates the foundation for renewed trust-building and cooperation across the sectors that will define the coming decades: the AI stack from infrastructure to compute, defence, cybersecurity, and emerging technologies."
Mark Linscott, former assistant US trade representative (USTR) for South and Central Asian Affairs from December 2016 to December 2018, called it a "huge deal for both countries, particularly less than a week after India's 'mother of all' trade agreements with the European Union."
"It's been a roller coaster ride in recent months, and the bilateral relationship has taken some hits. But this announcement should put the economic side back on track and start to pave the way for a comprehensive bilateral trade agreement, as the two leaders pledged almost a year ago," he said.
Basant Sanghera, managing principal at the Asia Group, called the deal a "milestone moment in eight decades of US-India diplomatic relations." While the legal text of the agreement is still being finalised, the deal is anticipated to provide notable tariff relief for New Delhi and represents a key achievement for the Trump administration's trade diplomacy, he said.
Coming almost exactly a year after Prime Minister Modi's visit to Washington, the deal will also inject much-needed momentum in the wider bilateral partnership after months of headwinds.
"India's patience has paid off - for now -but as it has seen from other American partners, New Delhi will need to actively manage the relationship to ensure the trade saga does not flare up again," Sanghera said.
