Senior government officials on Tuesday said the India-US trade deal will significantly expand and deepen bilateral trade, create fresh opportunities for labour-intensive sectors, and accelerate cooperation in advanced technologies between the world’s two largest democracies. 

Arvind Shrivastava, Secretary, Department of Revenue, Ministry of Finance, said the agreement would have a broad-based impact on trade and industry. “India-US trade deal will further expand and deepen trade between two of the largest economies of the World. It will create more opportunities for our labour-intensive and manufacturing sectors in the US market and give impetus to mutually-beneficial collaboration in high and advanced technology sectors,” he said. 

Earlier, Commerce and Industry Minister Piyush Goyal said the agreement would generate significant opportunities for domestic farmers, MSMEs, entrepreneurs and skilled workers, while strengthening the government’s Make in India initiative. He added that the deal would also facilitate access to advanced technologies from the US. “This unlocks the power of two large democracies working together for the shared prosperity of their people. Both India and the US are natural allies and our partnership will co-create technologies, co-develop solutions, and work together for peace, growth, and a brighter future,” Goyal said in a social media post. 

Late last night, Prime Minister Narendra Modi and US President Donald Trump officially confirmed the long-awaited India-US trade deal, which immediately reduces American tariffs on Indian goods to 18%. Both leaders have hailed the agreement as a turning point in ties between the two countries. 

President Trump first announced the deal on his social media platform Truth Social. The development was later confirmed by Prime Minister Modi following a high-level phone call with the US President. “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,” Modi said. 

The Prime Minister stressed that the partnership would benefit both nations and unlock “immense opportunities for mutually beneficial cooperation,” while also noting that India supports President Trump’s efforts towards global peace and stability. 

In a separate post on Truth Social, President Trump said India had agreed to stop buying Russian oil and would significantly increase purchases of American products. He added that the deal includes commitments exceeding $500 billion for US energy, technology, agricultural products and coal, linking the move to broader efforts to curb Russian revenues amid the Ukraine conflict.