Industry and market voices struck an optimistic note, viewing the announcement as a significant step in India-US economic engagement, while underscoring that the final impact will depend on how the deal’s details unfold in the months ahead.
The announcement of a landmark India–US trade deal, including a reduction in reciprocal tariffs, has drawn reactions from business leaders, market experts, and industry bodies. Welcoming the move, stakeholders said the agreement could strengthen bilateral economic ties, and unlock long-term opportunities across sectors, even as they cautioned that the finer details will be crucial.
Deal removes ‘hanging sword’ over rupee, equities: Nilesh Shah
Nilesh Shah, MD of Kotak Mahindra AMC, said the deal removes a major source of uncertainty hanging over Indian markets.
“India-US trade deal has gone through ups and downs like a roller coaster. While the devil is in the details, it removes a hanging sword over rupee, equity and rates market. Let us hope that it is a win-win deal for both the countries as they have a lot to gain through cooperation,” he said.
Boost for economy, rupee and capital flows
Deepak Agrawal, CIO-Debt at Kotak Mutual Fund, said the tariff reduction could improve India’s macroeconomic outlook.
“The reduction in tariff on Indian exports to the US is indeed a welcome move, expected to boost India’s economy. This development is likely to improve the country’s balance of payments gap, strengthen the rupee, increase foreign exchange reserves and attract foreign institutional investors,” he said, adding that stable rates and improved equity valuations could follow.
Reduced tariffs to boost India-US investment ties: Kumar Mangalam Birla
Aditya Birla Group Chairman Kumar Mangalam Birla said the deal would strengthen economic and strategic cooperation between the two countries.
“The reduced tariffs will help strengthen the strategic and economic ties between our two great countries and provide additional opportunity for investment and collaboration,” Birla said, noting that the agreement could help build resilient supply chains, unlock manufacturing opportunities, and drive long-term competitiveness in both economies.
Businessman Dr Sanjiv Goenka also welcomed the development, crediting India’s leadership.
“Anchored by Hon’ble 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 in a post.
USISPF sees ‘positive first step’
The US-India Strategic Partnership Forum (USISPF) described the tariff reduction as “an important and positive first step” towards a broader bilateral trade agreement.
“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,” USISPF said.
It added that such a pact would deliver meaningful benefits for businesses, workers, and consumers, while strengthening supply chains and economic resilience, and reiterated its support for expanding bilateral trade toward the USD 500 billion target.
Exporters flag red lines
Engineering Export Promotion Council President Pankaj Chadha said industrial tariffs were already on the table, while stressing India’s sensitivities.
“As far as tariffs on industrial goods are concerned, we have already offered zero tariff a few months ago. Our red line still remains agriculture and dairy,” Chadha said, adding that geopolitical shifts may have helped push the deal forward.
Under the agreement, India will also work to reduce tariffs and non-tariff barriers on US goods to zero and purchase over $500 billion of US energy, technology, agriculture, coal, and other products. Trump noted the deal would strengthen the “amazing relationship” between the two countries.
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Maribel Menjivar