The recently announced India–US trade deal is expected to significantly expand and deepen bilateral trade between the two economies, with the United States reducing tariffs on Indian exports from 50 per cent to 18 per cent, senior government officials said on Tuesday.
Union Revenue Secretary Arvind Shrivastava said the agreement would open new opportunities for India’s labour-intensive and manufacturing sectors in the US market while strengthening cooperation in high and advanced technology domains. He described the tariff reduction as a constructive step that would accelerate mutually beneficial trade and investment ties.
The tariff cut marks a major shift in trade relations between the two countries. The United States is India’s largest export destination, accounting for nearly 20 per cent of India’s total exports. Experts believe the reduced tariff regime will improve trade flows and help India regain its trade surplus with the US.
Officials said the agreement has also reduced a significant level of uncertainty that had been weighing on global and domestic markets. Speaking earlier at the Federation of Indian Chambers of Commerce and Industry conference on the Union Budget 2026–27, Economic Affairs Secretary Anuradha Thakur said the trade deal removed a major source of unpredictability in the international economic environment.
Despite ongoing geopolitical challenges worldwide, Thakur noted that India’s economy has remained resilient. She said India continues to stand out globally due to strong macroeconomic fundamentals, supported by prudent fiscal management and a stable financial system that enables long-term growth.
Financial Services Secretary M Nagaraju echoed similar views, stating that clarity has returned to the global economic landscape following the trade agreement. He described the deal as lifting a significant “dark cloud” that had been affecting global economic sentiment.
Nagaraju urged industry leaders to remain optimistic, noting that the government had already taken measures to cushion the impact of higher tariffs earlier. With the reduction now in place, he said businesses could operate with greater confidence and predictability.
The trade deal is expected to provide relief to exporters who had faced competitive disadvantages under the earlier tariff structure. Officials believe the lower tariffs will encourage higher export volumes, enhance market access for Indian goods, and support domestic employment in key manufacturing sectors.
The agreement is also seen as reinforcing India’s position as a reliable trade partner at a time when global supply chains are undergoing realignment. By lowering trade barriers, policymakers aim to integrate Indian industries more closely with global markets while sustaining economic stability at home.
Government officials maintained that the deal aligns with India’s broader strategy of fostering export-led growth while safeguarding macroeconomic stability. The tariff reduction, they said, sends a strong signal of renewed confidence in India–US economic engagement and is expected to have positive spillover effects across multiple sectors.
