The recently finalized trade agreement between India and the United States is expected to provide a significant boost to India's Micro, Small, and Medium Enterprises (MSME) sector, according to Union Home Minister Amit Shah. Shah stated that the deal would enhance the global competitiveness of small industries, generate employment opportunities, integrate them into new supply chains, and improve the flow of investment and credit.
Shah, in a post on X, described the trade deal as a "big day" for India-US relations. He believes it will pave the way for stronger trade ties and mutual growth, ultimately benefiting both nations and their people, with increased business activity between the two countries. He also thanked Prime Minister Narendra Modi for his initiative, which he said would directly benefit the country's small entrepreneurs.
The US President Donald Trump announced a reduction in tariffs on Indian goods, decreasing them from 25 percent to 18 percent following discussions with PM Modi. This reduction signals a potential easing of previously strained trade relations between the two countries. PM Modi welcomed this move, noting that "Made in India" products would now be subject to lower tariffs. He also expressed his gratitude to President Trump for this decision. Trump stated that this tariff cut was a result of PM Modi's request and reflected the friendship and respect between the two nations. He also mentioned that a long-pending India-US trade deal was nearing completion, despite earlier disagreements, particularly concerning agriculture.
Commerce and Industry Minister Piyush Goyal said that the India-US trade agreement will unlock significant opportunities for domestic farmers, MSMEs, entrepreneurs, and skilled workers, promoting the "Make in India" initiative. Goyal emphasized that the agreement would facilitate technology transfer from the US to India. He added that this development underscores the strength of two like-minded, fair-trading democracies collaborating for shared prosperity.
External Affairs Minister S Jaishankar welcomed the India-US trade agreement, stating that it would stimulate growth in both economies and strengthen India's "Make in India" endeavors.
Echoing similar sentiments, BJP National President Nitin Nabin hailed the trade agreement, noting it would provide new momentum to the Indian economy and boost the country's goal of achieving developed nation status.
The US-India Strategic Partnership Forum hailed the tariff cut as an "important and welcome step," while government sources clarified that India's crude purchases would be conducted globally from countries not under international sanctions, based on prevailing market rates. "We did not buy from Venezuela when sanctions were in place. Now that sanctions are lifted, we will buy," they said.