India-US
Breakthrough: Indian industry leaders applaud India–US trade deal
Leading Indian industry leaders on Tuesday welcomed the breakthrough in India–US bilateral trade ties, following months of tariff-related tensions between the two countries.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said the reduction in tariffs would strengthen strategic and economic relations between the two nations while opening new avenues for investment and collaboration.
“The Aditya Birla Group is the largest Indian investor in the United States, and we believe this agreement will help build more resilient supply chains, unlock manufacturing opportunities, and enhance long-term economic competitiveness in both countries. We remain committed to expanding our presence and investments in the US, where we see significant opportunities for innovation, growth and enduring partnerships,” Birla said.
Sudarshan Venu, Chairman of TVS Motor Company, described the agreement as a positive development following discussions between Prime Minister Narendra Modi and US President Donald Trump.
“The reduction in the US reciprocal tariff on Indian goods to 18% improves export competitiveness and reinforces confidence in long-term bilateral economic ties, furthering the Prime Minister’s vision of Viksit Bharat 2047,” Venu said.
He added that the intent on both sides to progressively lower tariffs and non-tariff barriers could deepen supply-chain integration, accelerate technology collaboration, and attract investment into advanced manufacturing.
“In a challenging global environment, predictability and openness in trade help Indian industry scale, innovate and create jobs. We look forward to a stronger India–US partnership that accelerates growth, expands market access, and supports India’s ambition to become a globally competitive manufacturing and innovation hub,” Venu said.
Anish Shah, Group CEO and Managing Director of the Mahindra Group, said the agreement marked a significant step in strengthening bilateral trade and investment ties.
“The immediate reduction in reciprocal tariffs on Indian exports from 25% to 18%, along with a commitment to progressively lower tariff and non-tariff barriers, will boost growth momentum and improve the predictability businesses need to invest with confidence,” Shah said.
The remarks came after President Trump announced that the United States and India had agreed to a new trade deal following a phone conversation with Prime Minister Modi.
Under the agreement, the United States will immediately reduce its reciprocal tariff on Indian imports from 25% to 18%. Posting on Truth Social, Trump said the deal was reached “out of friendship and respect” for Modi and added that India had agreed to eliminate tariffs and non-tariff barriers on US goods.
Trump also said India would halt purchases of Russian oil and increase energy imports from the United States, linking the move to broader efforts aimed at ending the war in Ukraine.
Prime Minister Modi confirmed the development in a post on X, welcoming the reduction of tariffs to 18% on “Made in India” products and thanking President Trump for the decision. He said closer cooperation between the world’s largest democracies would unlock significant opportunities for mutually beneficial growth.
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