External Affairs Minister S. Jaishankar on Tuesday (February 3, 2026) welcomed the India-U.S. trade agreement, saying it will spur growth in both economies and strengthen the country’s ‘Make in India’ endeavours.
India-U.S. trade deal LIVE
Mr. Jaishankar, who is on a three-day visit to the U.S. to attend a Washington-led ministerial meeting on critical minerals supply chain, said he “welcomed the announcements on bilateral trade”.
India and the U.S. agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18% from the current 25%, U.S. President Donald Trump said on Monday (February 2, 2026) after a phone conversation with Prime Minister Narendra Modi.
“This will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavors and encourage trusted technology ties,” Mr. Jaishankar said in a post on X.
“The opportunities in our economic engagement are truly vast, and we are confident of realising them. A robust economic relationship is the strongest foundation for our strategic partnership,” he added.
Union Home Minister Amit Shah called this “a big day for India-U.S. relations”, congratulating both Mr. Modi and Mr. Trump for this “historic deal.”
“I congratulate PM @narendramodi and President @realDonaldTrump for this historic deal, which will elevate our strategic partnership and greatly benefit both nations and their people,” he noted in a post on X.
“Business between India and U.S. set to flourish further,” Mr. Shah added.
Union Minister Ashwini Vaishnaw said that India and U.S. together have huge potential to work for peace and development.
“U.S. and India are world’s largest democracies. Both countries are natural allies. Together, India and U.S. have huge potential to work for peace and development,” Mr. Vaishnaw said, taking it to X.
“U.S. and India have complementary strengths. Both countries can co-create technologies and co-develop solutions that will benefit the world. Trade deal between US and India will lead to brighter future for both countries,” he added.
He also said that that citizens and industries of both countries will benefit greatly from this deal.
Following the trade agreement announcement, PM Modi said he was delighted that “Made in India products will now have a reduced tariff of 18%”.
“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Mr. Modi said.
Congress leader Jairam Ramesh said that President Trump seems to have leverage over Prime Minister Modi.
“He [Mr. Trump] announced the halt of Op Sindoor from Washington DC. He announced the updates on India’s oil purchases from Russia and Venezuela from Washington. He’s now announced an India-U.S. Trade Deal from Washington, the full details of which are awaited,” Mr. Ramesh said in a post on X.
“President Trump clearly seems to have some leverage over Prime Minister Modi – who is now mortified of even being seen with him, let alone engage in the usual bout of hugs,” the Congress leader added in the post on X.
“It appears Mr. Modi has capitulated finally. Surely this cannot be the father of all deals. In Washington, clearly Mogambo Khush Hai,” Mr. Ramesh further said.
President Trump said India will move forward to reduce “tariffs and non-tariff barriers” against the US to zero, adding New Delhi would buy American goods, including energy, worth more than $500 billion.
“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25% to 18%,” the U.S. president said on social media.
India will “likewise move forward to reduce their tariffs and non tariff barriers against the United States, to zero”, he said.
Mr. Trump said Mr. Modi also committed to buy American goods at a much higher level, in addition to over $500 billion dollars of US energy, technology, agricultural, coal, and many other products.
“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done something that cannot be said for most,” he said.
The Modi-Trump phone talks came on a day EAM Jaishankar travelled to Washington DC.
(With inputs from PTI)
Published – February 03, 2026 07:53 am IST
