New Delhi | Union Home Minister Amit Shah has called the India-US trade deal "historic", saying it will elevate the strategic partnership between the two countries and pave the way for stronger trade ties and mutual growth.
In a series of posts on 'X', Shah said the deal opens "the gateway to endless opportunities for our youth, entrepreneurs, and techies".
"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 for the "historic deal", Shah said it will "elevate our strategic partnership and greatly benefit both nations and their people. Business between India and US set to flourish further".
He said the trade deal will give new strength to India's MSMEs and boost the global competitiveness of small industries, asserting that the initiative will directly benefit the country's small entrepreneurs.
India and the US have agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from a total 50 per cent.
"IndiaUSTradeDeal will give new strength to India's MSMEs. This will boost the Global Competitiveness of small industries, increase employment, secure a place in new supply chains, and enhance investment and Credit Flow.
"Gratitude to Modi ji for this initiative that directly benefits the country's small entrepreneurs," Shah said.
"Harnessing new force to India's roaring software and services sectors, the #IndiaUSTradeDeal pivots the nation to a new boom," he added.
After the announcement of the deal by US President Donald Trump on Monday, the prime minister had 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 had said on 'X'.
He had said that when two large economies and the world's largest democracies work together, it benefits the 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 had said.
Modi noted that he looked forward to working closely with Trump to take the bilateral partnership to unprecedented heights without mentioning many of the other issues that figured in Trump's post on social media.
Trump had said India will move forward to reduce "tariffs and non tariff barriers" against the US to zero, adding New Delhi 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," the US president said on social media.
"Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done something that cannot be said for most," he said.
Trump said Modi and he also discussed ending the war between Russia and Ukraine.
"He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," the US president said.
"This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week," Trump said.
The Modi-Trump phone calls came on a day when External Affairs Minister S Jaishankar travelled to Washington, DC.
Trump and Modi last spoke on the phone in October 2025. The two leaders had agreed at a meeting in February last year to finalise the first tranche of a bilateral trade agreement by the autumn.
Though the two sides held several rounds of negotiations, forward movement on the trade deal stalled after Trump imposed 50 per cent tariffs on Indian goods, including the 25 per cent punitive tariffs for India's procurement of Russian crude oil.
India now has lower tariffs than competing export economies, officials said.
They cited 19 per cent American tariffs on Indonesia, 20 per cent on Vietnam, 20 per cent on Bangladesh and 34 per cent on China.
