Amit Shah Calls India-US Trade Deal Historic Boost to Strategic Partnership

Union Home Minister Amit Shah hailed the recently concluded India-US trade deal as a milestone that will strengthen economic and strategic ties between the two countries. In a post on X late Monday, Shah called it “a big day for India-US relations”, as the agreement reduces US tariffs on Indian goods from 25% to 18%, paving the way for enhanced trade and mutual growth.

Shah congratulated Prime Minister Narendra Modi and US President Donald Trump for the “historic deal”, noting that it will benefit businesses and citizens of both nations. “Business between India and the US is set to flourish further,” he added, emphasising the deal’s role in elevating the overall strategic partnership between the world’s two largest democracies.

Prime Minister Modi also expressed delight over the tariff reduction for Made-in-India products, calling it a significant step that unlocks opportunities for mutually beneficial cooperation. “When two large economies work together, it benefits the people and creates immense opportunities,” Modi said, highlighting the broader economic and geopolitical significance of the agreement.

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President Trump confirmed the deal on social media, stating that the US will immediately reduce tariffs on Indian goods from 25% to 18%. He also said India will progressively remove its tariffs and non-tariff barriers against US goods, with New Delhi committing to purchase American products—including energy, technology, agriculture, and coal—worth more than $500 billion. Trump called his rapport with Modi “amazing” and praised their ability to achieve results that few other leaders can.

The trade deal follows a period of stalled negotiations that saw punitive tariffs imposed by the US last year, including a 50% tariff on certain Indian goods and 25% on India’s Russian crude oil imports. Analysts note that India now enjoys lower tariffs than many competing export economies, such as Indonesia (19%), Vietnam (20%), Bangladesh (20%), and China (34%).

External Affairs Minister S. Jaishankar was in Washington, DC, on the day of the announcement, signalling continued diplomatic engagement to solidify the agreement. Both leaders also discussed broader issues, including efforts to reduce reliance on Russian oil and address the ongoing conflict in Ukraine, underscoring the strategic dimensions of the US-India partnership.

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