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New Delhi: In a huge relief for the Indian economy, US President Donald Trump spoke to Prime Minister Narendra Modi on Monday and announced that India and the US have agreed on a trade deal. The United States will bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent. Following the trade pact and tariff cut announcement, there is a lot of enthusiasm within the government and the business community. The US-India trade deal is expected to bring major benefits to Indian farmers, small industries, exporters, and skilled labor. It will give fresh momentum to ‘Make in India’ and also enable new technology into the domestic market from the United States.
After Trump announced 50 per cent tariffs on Indian products entering the US, several were reeling under the heavy taxes. Labor-based industries such as textiles, leather, and marine products were severely impacted. Now, with tariffs being reduced, there is hope that orders will increase again in these sectors.
Union Commerce Minister Piyush Goyal expressed happiness over the agreement between India and the United States that is expected to open up big opportunities for domestic farmers, MSMEs, entrepreneurs, and skilled labour. He said it will give global recognition to “Make in India,” “Design in India,” and “Innovate in India.”
| Sector | Companies |
|---|---|
| Textiles and Apparel | Indo Count Industries, Kitex, Gokaldas Exports, Pearl Global, Welspun India, Himatsingka Seide, Trident, Vardhman Textiles, Arvind |
| Seafood Sector | Apex Frozen Foods, Waterbase, Avanti Feeds |
| Auto and auto parts | Sona BLW, Ramkrishna Forging, Bharat Forge, Tata Motors, Samvardhana Motherson, Balkrishna Tyres, Sansera Engineering |
| Chemicals and Agrochemicals | UPL, SRF, Jubilant Ingrevia, Aarti Industries, PI Industries |
| consumer companies | LT Foods, KRBL, Tata Consumer Products |
After speaking to Prime Minister Narendra Modi on phone, US President Donald Trump said that his administration will reduce the reciprocal tariff imposed on Indian goods from 25 percent to 18 percent. This will make Indian products cheaper in the American market. Commerce Secretary Rajesh Agrawal called it historic. He said the agreement will open new paths of prosperity and growth for both countries.
Think tank Global Trade Research Initiative said it is still important to clearly understand which products have been included in the India-US trade agreement. Footwear industry businessman Aqeel Panaruna said it will strengthen India’s global position. Federation of Indian Export Organisations President S.C. Ralhan welcomed the decision, saying it will make Indian exports more competitive compared to Asian countries. He expressed hope that stalled orders in sectors like textiles, leather, and footwear will start again.
According to government data, in December 2025, India’s exports to the US declined by 1.83 percent to $6.88 billion. However, the imports surged to $4.03 billion in the same month. During the April to December period, India’s exports to America surged to $65.87 billion.
