India–US concludes much awaited Trade Deal; Marks a Strategic Milestone in Bilateral Economic Partnership, Father of All Deals: Dr. Vijay Kalantri

Mumbai, 2nd February 2026: World Trade Centre Mumbai and All India Association of Industries welcome the announcement of the conclusion of the long-awaited India–US trade deal, describing it as a significant milestone that strengthens one of the most consequential economic partnerships of the 21st century. The agreement reflects a shared commitment and efforts made by Hon. PM Narendra Modi and US President Donald Trump to deepen trade, investment, and supply-chain cooperation amid evolving global economic dynamics.

The surprise announcement of the thaw in trade relationship came late in the evening with US President Donald Trump tweeting about the conclusion of the deal which reduced the reciprocal tariff rate to 18% and removed the 25% of tariff owing to Russian Crude Oil purchases. 

Commenting on the development, Dr. Vijay Kalantri, Chairman, World Trade Centre Mumbai and President, All India Association of Industries, stated,

“The announcement of the India–US trade deal is a timely and strategic step that reinforces confidence among businesses and investors on both sides. It reflects a shared vision to build resilient supply chains, promote innovation-led growth, and unlock the full potential of India–US economic cooperation.”

“The agreement is significant in the current global context, where exporters are seeking diversification, resilience, and trusted partnerships amidst turbulence. India’s growing manufacturing base, large consumer market, skilled workforce, and reform-driven policy environment complement the United States’ strengths in technology, capital, and innovation, creating a mutually reinforcing partnership”, reiterated Dr. Kalantri. 

Drawing an objective assessment of the trade deal, Dr. Kalantri said “Prima facie, any agreement for a trade deal will be beneficial for MSMEs and startups, enabling them to integrate more effectively into global value chains, access advanced technologies, and expand their presence in international markets. However, in absence on the fine print, its full impact will be difficult to assess since India-US trade covers almost all sectors economy. However, the immediate relief in tariff is important as our recent agreements with UK, EU and New Zealand will only come into force in 6-8 months. The goal of doubling the trade to 500 billion dollars will complement India’s efforts to make export as an engine of growth to achieve the status of 10 trillion-dollar economy by 2030. This will also support capital flow to the country, strengthening the position of rupee vis a vis other currency”. 

“This trade deal when complemented with the Union Budget 2026-27 offers a window of opportunity for the country. With budgetary support and policy directions of the government pertaining to the technology sector and data centre, the trade deal will propel us into new age economy. Moreover, the expected broad base nature of the deal will hopefully support sectors like textiles, gems and jewellery, marine products and engineering goods,” Dr. Kalantri added.

For Further Information:

Ms. Priya Pansare,

Director, Trade and Investment Promotion,

World Trade Centre, Mumbai 

Priya.pansare@wetrade.org