India Inc sees US trade deal as a confidence anchor, trigger for long-term capital deployment

US-India trade deal

• India–US trade deal cuts reciprocal tariffs on exports from 50% to 18%
• Corporate India views the deal as enhancing policy predictability and global integration.
• Business leaders expect long-term growth, investment, and supply-chain benefits

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Corporate India is viewing the India–US trade deal not as a short-term export boost, but as a deeper signal of policy predictability, global integration and India’s rising credibility in the world’s trade architecture.

Across sectors, from manufacturing and autos to FMCG, aviation and engineering, business leaders see the agreement as reinforcing a multi-year growth narrative rather than offering instant gains.

At the heart of this optimism is the sharp reduction in reciprocal tariffs on Indian exports to 18%, down from 50%, alongside a stated commitment to progressively lower tariff and non-tariff barriers. For many companies, this clarity matters as much as the headline number.

Mahindra Group CEO and MD Dr. Anish Shah framed the deal squarely in terms of business confidence and investment visibility.

“The Mahindra Group welcomes the India–US trade deal, which marks a significant step forward in strengthening bilateral trade and investment ties. The immediate reduction in reciprocal tariffs on Indian exports from 50% to 18%, along with the commitment to progressively lower tariff and non-tariff barriers, will boost growth momentum and improve the predictability businesses need to invest with confidence,” he said.

With India already on a strong growth trajectory, Shah noted that the agreement “adds meaningful momentum to India’s growth ambitions,” underscoring how trade policy certainty feeds directly into long-term capital allocation decisions.

A similar emphasis on predictability and supply-chain integration came from TVS Motor Company chairman Sudarshan Venu. Welcoming the deal, Venu said, “The reduction in the US reciprocal tariff on Indian goods to 18% is a positive step that improves export competitiveness and reinforces confidence in long-term bilateral economic ties, furthering the Hon’ble PM’s vision of Viksit Bharat 2047.”

Crucially for manufacturing-led exporters, Venu highlighted the importance of future tariff and non-tariff easing.

“Equally important is the intent on both sides to progressively lower tariffs and non-tariff barriers, which can deepen supply-chain integration, enable faster technology collaboration, and attract investment into advanced manufacturing,” he said. In a challenging global environment, he added, “predictability and openness in trade help Indian industry scale, innovate and create jobs.”

For large diversified groups, the India–US deal is also being viewed in the context of India’s expanding web of global trade partnerships.

ITC Chairman and MD Sanjiv Puri described the agreement as part of a broader structural shift in India’s global positioning. “The historic India-US deal spearheaded by the Hon'ble Prime Minister's vision and laudable global statesmanship signals a new era of co-operation in trade and development between the world's largest democracies,” he said.

Puri pointed out that the deal follows a series of agreements with the EU, UK, New Zealand, Oman and others, collectively marking what he called “a golden era for India enabling a deeper integration with global value chains.” For companies with large domestic supply bases and export ambitions, this deeper integration could translate into scale, efficiency and new livelihood opportunities.

Meanwhile, SpiceJet chairman and managing director Ajay Singh described the agreement as a brand and confidence enhancer.

“The finalisation of the India-US trade deal is a watershed moment for our nation and a major boost for the ‘Made in India’ brand,” Singh said, calling it a testament to decisive leadership amid complex global challenges. Coming on the back of recent agreements with the EU and UK, Singh said the deal “reinforces India’s growing confidence and credibility on the global stage and lays the foundation for sustained growth and stronger international partnerships.”

For business leaders with significant overseas exposure, the symbolism of India’s expanding trade footprint is as important as the commercial specifics.

Bharti Enterprises founder and chairman Sunil Bharti Mittal described the agreement as “a much awaited and a significant milestone for both the nations, unlocking immense opportunities for investments, growth.” He added that “the flurry of FTA’s is an affirmation of India’s role at the centre of global frameworks, aimed at building resilient international trade patterns.”

Mid-sized industrial exporters, meanwhile, are closely watching how the agreement translates into execution on the ground.

Vivek Bhatia, MD & CEO of TKIL Industries (formerly thyssenkrupp Industries India), said that while companies are awaiting detailed fine print, the headline tariff reduction itself is meaningful.

“The reduction in tariffs to 18% is a significant step that will enhance export competitiveness for Indian manufacturers and also strengthen economic ties between the two leading democracies,” he said.

For TKIL, a more predictable trade environment opens up concrete opportunities. “Lower trade barriers will improve cost efficiencies, enable smoother supply chain integration, and unlock additional avenues for bilateral investment and industrial collaboration,” Bhatia noted, adding that the agreement lays the foundation for stronger investment flows and a future-ready industrial partnership.

According Bharat Forge CMD Baba Kalyani, the India US trade deal is not just about trade, and it represents a long term relationship between two of the world’s largest democracies.  Calling it a “game changer” for Indian industry, Kalyani said the agreement strengthens India’s position in global supply chains and gives companies confidence to expand across automotive, aerospace and defence.

“The growth outlook is clearly positive, and we see this as a strong foundation for the next phase of our global expansion,” he added.

The response from India Inc suggests that the trade deal is being read less as a one-off tariff concession and more as a signal of India’s maturing role in global commerce.

For Corporate India, the real test will lie in execution and follow-through. But for now, the mood is clear. The India–US trade deal has reinforced confidence that India’s growth story is becoming more deeply embedded in global value chains, with manufacturing and investment at its core.