Washington DC [US], February 3 : Following the announcement of the India-US trade deal by US President Donald Trump, where Washington reduced the reciprocal tariff from 25 per cent to 18 per cent, experts welcomed the announcement, describing it as a significant step towards strengthening economic ties and restoring momentum in what they see as one of the most consequential bilateral partnerships of the 21st century.
Speaking to ANI, following the announcement, a former top US official, Nisha Biswal, said that the "long-awaited trade deal" would pave the way for a much larger economic partnership between the two countries, noting that the agreement, which, according to her, is in Phase 1, creates a pathway for negotiations on a more comprehensive arrangement, similar to the recently announced EU-India trade agreement which was concluded during the state visit of European Council President Antonio Costa and European Commission President Ursula von der Leyen last month.
"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. 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," she said.
According to her, the two deals together could transform India's global trade position and economy.
Partner at The Asia Group, Aman Raj Khanna, said that the agreement comes at a critical moment and helps restore positive momentum in the bilateral relationship, adding that the resolution offers much-needed relief to exporters on both sides who have faced uncertainty in recent months and lays the foundation for renewed trust and cooperation in key sectors such as artificial intelligence, defence, cybersecurity and emerging technologies.
"This agreement comes at a critical moment and goes a long way in restoring positive momentum to what I still believe will be the most consequential partnership of the 21st century. 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," he stated.
Meanwhile, Mark Linscott, Senior Advisor at the US-India Strategic Partnership Forum (USISPF), described the agreement as a major development for both countries, particularly coming shortly after India's trade agreement with the European Union.
He said that while the bilateral relationship has faced challenges in recent months, the announcement should help put the economic partnership back on track and pave the way for a comprehensive bilateral trade agreement.
"This is 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," the Senior Advisor noted.
Managing Principal at The Asia Group, Basant Sanghera, also described the announcement as a milestone moment in eight decades of US-India diplomatic relations; however, the legal text of the agreement is still to be finalised.
He stated that it was expected to provide notable tariff relief for India and represents a key achievement for the Trump administration's trade diplomacy, adding that the deal, coming nearly a year after Prime Minister Modi visits Washington, would inject much-needed momentum into the broader bilateral relationship.
"Today's announcement by President Trump of a bilateral trade agreement marks a milestone moment in eight decades of U.S.-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. Coming almost exactly a year after Prime Minister Modi's visit to Washington, the deal will also inject much-needed momentum into 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," he stated.
The remarks come after Trump said that the US and India "have agreed to a trade deal" with Washington reducing the reciprocal tariff from 25 per cent to 18 per cent, "out of friendship and respect" for PM Modi. He further stated that the deal will come "effective immediately".
In his Truth Social post, Trump referred to his conversation with PM Modi earlier in the day, noting that the Prime Minister was one of his closest friends and a powerful, respected leader of India.
The US President also said PM Modi had agreed to "stop buying Russian Oil", and to buy much more from the US.
Trump further noted that India would reduce tariffs and non-tariff barriers against the US.
"It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! 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% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO," Trump's post read.
"The Prime Minister also committed to "BUY AMERICAN," at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. 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. Thank you for your attention to this matter!" he added.
Following Trump's post, Prime Minister Narendra Modi, in a post on X, said that it was wonderful to speak with his "dear friend President Trump" and expressed delight that "Made in India products will now have a reduced tariff of 18%".
"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," PM Modi wrote in a post on X.
The Prime Minister also said that cooperation between the two major economies and the world's largest democracies serves the interests of their people and opens up vast opportunities for mutually beneficial collaboration.
"When two large economies and the world's largest democracies work together, it benefits our 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. I look forward to working closely with him to take our partnership to unprecedented heights," the Prime Minister added.