India’s Ambassador to the United States, Vinay Mohan Kwatra, praised the recent India–US trade announcement, highlighting it as a significant achievement for the partnership between Prime Minister Narendra Modi and President Donald Trump. The trade deal is seen as opening up new opportunities for both countries, as stated by Kwatra, who emphasized the positive impact on the economies and people of India and the USA.
The trade announcement also garnered attention from renowned US economist Steve Hanke, who commended India’s policy changes related to trade, growth, and supply-chain resilience. Hanke specifically noted India’s efforts to reduce import taxes on essential equipment for processing critical minerals and manufacturing lithium-ion battery cells, aiming to decrease reliance on China.
Industry leaders, including the US-India Strategic Partnership Forum, expressed support for the development, viewing it as a strong indication of the commitment from both nations to enhance economic relations and progress towards a comprehensive trade agreement. The reduction of India’s reciprocal tariff from 25 percent to 18 percent was highlighted as a positive initial step, with further details of the agreement yet to be finalized.
The USISPF emphasized the potential benefits of a bilateral trade agreement, emphasizing that it would bring significant advantages to businesses, workers, and consumers in both countries. The forum stressed the importance of addressing tariffs, market access, non-tariff barriers, and other trade-related issues across various sectors to strengthen supply chains and enhance economic resilience.
Both governments have signaled a long negotiating process ahead, with additional phases and discussions expected in the coming months. The USISPF expressed optimism about the constructive momentum generated by the recent announcement and reiterated its dedication to collaborating with the Indian and US governments to achieve the shared goal of expanding bilateral trade towards the $500 billion target.
