US-India trade deal brings relief for exporters, lifts long-term confidence: India Inc

US-India Trade Deal

• US tariffs on Indian exports cut to 18 percent from 50 percent
• Deal boosts India-US trade ties and business confidence
• Lower tariffs expected to aid manufacturing, technology, and exports

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Corporate India has welcomed the India-US trade deal, describing it as a significant step towards strengthening bilateral trade and investment ties at a time of heightened global uncertainty.

Industry leaders said that the reduction of US tariffs on Indian exports to 18 percent from 50 percent will result in improved competitiveness, greater predictability for businesses, and renewed confidence for long-term investment decisions.

Dr Anish Shah, Group CEO and Managing Director of Mahindra Group, said the agreement would provide a strong boost to growth momentum and business confidence.

“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,” Shah said.

“With the Indian economy on a strong growth trajectory, this deal adds meaningful momentum to India’s growth ambitions,” he added.

Industry leaders see the agreement not just as near-term tariff relief, but as a broader signal of stability in India–US economic relations. Lower trade barriers and greater policy clarity are expected to support export-oriented sectors and help Indian companies plan capacity expansion and technology investments with more certainty.

Sudarshan Venu, chairman of TVS Motor Company, said the deal improves export competitiveness and strengthens confidence in long-term bilateral ties.

“TVS Motor Company applauds the India - US trade deal announced following the conversation between PM Modi and President Trump. 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,” Venu said.

He also highlighted the importance of gradually lowering non-tariff barriers, noting that deeper trade integration could have wider spillover benefits for manufacturing and technology.

“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.

Venu added that India’s recent trade agreements with major global partners have strengthened the country’s position in a challenging global environment.

“India has now secured several strategic trade deals with key economic partners around the world. In a challenging global environment, predictability and openness in trade help the Indian industry scale, innovate and create jobs. We look forward to a stronger India-US partnership that accelerates growth, expands market access, and supports India’s ambition to be a globally competitive manufacturing and innovation hub,” he said.

Echoing the broader macroeconomic benefits of the tariff reduction, Rajeev Juneja, president of trade body PHDCCI, said the move signals renewed openness in global trade.

“By lowering tariff duties, the United States signals a renewed commitment to trade openness and economic efficiency. Reduced tariffs cut input costs for domestic industries, strengthen supply chains, and ease inflation by lowering prices for businesses and consumers. They benefit key sectors, including manufacturing, technology, healthcare, and renewable energy, by improving access to intermediate goods, capital equipment, and critical components. Importantly, this approach aligns with the spirit of cooperation fostered by the strong personal rapport between Narendra Modi and Donald Trump, reinforcing trust and predictability in bilateral trade,” Juneja said.