New Delhi [India], February 3 (ANI): Industry leaders, market experts and economists on Tuesday welcomed the India–US trade deal, under which Washington reduced tariffs on Indian goods to 18 per cent, calling it a historic and win-win agreement that will strengthen bilateral economic ties, improve market sentiment and bolster India’s position in global trade.
Ashish Chauhan, Managing Director and CEO of the National Stock Exchange of India (NSE), described the agreement as a welcome move for global trade, noting that tariffs on Indian goods would come down sharply with immediate effect.
In a post on X, Chauhan said the deal would be a major boost for businesses, supply chains and the India–US partnership. “Welcome move for global trade! Congratulations! After today evening’s talks between the US President Mr Donald Trump and the Indian Prime Minister, Shri Narendra Modi, tariffs on Indian goods coming down sharply from 50% to 18% with immediate effect. A big win for businesses, supply chains, and the India–US partnership. Kudos to the teams involved in bringing this historic deal to a close,” he wrote.
Chairman of the 16th Finance Commission, Arvind Panagariya, also welcomed the development, praising the leadership involved in clinching the agreement.
In a post on X, Panagariya said two of the world’s toughest negotiators had reached an agreement, calling it both the “father and mother of all trade deals,” and congratulated Prime Minister Modi. “Bravo! Two of the world’s toughest negotiators come to an agreement. So, we have both the father and mother of all trade deals! Congratulations Prime Minister! India is unstoppable under your leadership!!” he said.
Market participants said the deal would have far-reaching implications for Indian companies and the broader economy. Shashank Udupa, a SEBI-registered research analyst and fund manager at Smallcase, said the agreement was a net win for India as it removed the disadvantages of not having a trade deal with the US.
He noted that India had remained firm on protecting its dairy and agriculture sectors while agreeing to increased energy purchases from the US. Udupa added that securing trade deals with both the US and the European Union—concluded last month during the state visit of European Council President Antonio Costa and European Commission President Ursula von der Leyen—within a short span would support India’s push towards becoming a manufacturing-led economy.
“The deal is a net win-win for everyone,” he said. “India has always been very clear that we won’t expose our dairy and agri sector. PM Modi has defended that stance, and finally we agreed with the US on buying energy worth USD 500 billion. Having a deal at such low tariffs, cheaper than many of our Asian counterparts, will surely boost company profits. Overall, a net win for India,” he added.
Sonam Srivastava, Founder and Fund Manager at Wright Research PMS, said the reduction in tariffs was a meaningful positive for Indian equities in terms of sentiment and earnings visibility.
She said export-oriented sectors such as IT services, pharmaceuticals, speciality chemicals, auto ancillaries and engineering goods were likely to benefit the most from improved competitiveness in the US market. “The reduction in tariffs from 25% to 18% is a meaningful positive. The sharp surge in GIFT Nifty reflects an immediate repricing of risk, driven by expectations of improved trade competitiveness and stronger bilateral alignment,” Srivastava said.
From a sectoral perspective, she added that lower tariff barriers would improve price competitiveness for Indian firms in the US, potentially translating into better order inflows, margin stability and higher capacity utilisation. At the macro level, she said the agreement reflects consistency in India’s trade strategy and reinforces its standing as a preferred global partner, while cautioning that durability will depend on execution and earnings follow-through.
Sachin Sawrikar, Managing Partner at Artha Bharat Investment Managers IFSC LLP, said the agreement strengthens one of the world’s most consequential economic partnerships by improving market access and reducing policy uncertainty.
“Stronger bilateral trade is expected to drive higher cross-border investment flows, deepen institutional participation, and accelerate the integration of Indian companies into global supply chains,” he said, adding that the deal should support the Indian rupee over the medium term and reinforce positive equity market sentiment.
Meanwhile, Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Company, said the deal had seen several ups and downs, but its conclusion removes a major overhang on the rupee, equity and interest rate markets. He expressed hope that the agreement would prove to be a win-win for both countries.
The remarks came after US President Donald Trump announced that the US and India had agreed to a trade deal, reducing reciprocal tariffs from 25 per cent to 18 per cent with immediate effect.
In a post on Truth Social, Trump said he had spoken with Prime Minister Modi, describing him as one of his closest friends and a powerful, respected leader. He said India had agreed to stop buying Russian oil and to purchase significantly more energy and other products from the US.
“It was an honor to speak with Prime Minister Modi… Out of friendship and respect for Prime Minister Modi, we agreed to a trade deal… lowering the reciprocal tariff from 25% to 18%,” Trump wrote, adding that India would reduce tariffs and non-tariff barriers against the US.
Following Trump’s post, Prime Minister Modi said on X that it was wonderful to speak with his “dear friend President Trump” and welcomed the reduced tariffs on Indian goods.
“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,” PM Modi said, adding that cooperation between the two major economies and the world’s largest democracies opens vast opportunities for mutually beneficial collaboration and strengthens global peace, stability and prosperity. (ANI)
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