India and the US announced a major trade deal, cutting tariffs on Indian goods from 25% to 18%.
PM Modi and President Trump hailed the agreement as the start of a new phase in bilateral economic ties.
The deal aims to boost cooperation across energy, technology, agriculture, and trade.
The two nations, India and the US, are all set to redefine the future of bilateral cooperation by announcing their new trade deal on Monday, 2 February 2026. It is being described as a significant step forward by both sides to strengthen their economic ties. Indian Ambassador to the US Vinay Mohan Kwatra described the agreement as the beginning of an “exciting new phase” in the India–US partnership under the leadership of Indian Prime Minister Narendra Modi and US President Donald Trump.
Indian Ambassador to the US Vinay Mohan Kwatra hailed the new announcement, saying it “heralds an exciting new phase in our partnership.” He took to X to share the news, writing, “A big WIN for a consequential partnership under the leadership of Prime Minister Narendra Modi and President Donald Trump. India and the USA announce a trade deal creating vast new opportunities for the two economies and the people of our two great nations. Today's announcements herald an exciting new phase in our partnership.”
Earlier on Monday, the US President said that India and the United States had reached a trade deal, outlining key elements after a phone conversation with PM Modi, whom he described as “one of my greatest friends.” In a detailed post on Truth Social, Trump detailed the agreement, saying that the US would immediately reduce its reciprocal tariff on Indian goods from 25 per cent to 18 per cent, calling it a major shift in bilateral trade ties linked to energy cooperation and broader geopolitical goals.
Trump said the two leaders discussed “many things, including trade, and ending the war with Russia and Ukraine.” He claimed that PM Modi agreed to stop buying Russian oil and to increase purchases from the United States and, potentially, from Venezuela. The US President further added, “This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!”
According to Trump, the trade deal would take effect immediately. He said India would “move forward to reduce their tariffs and non-tariff barriers against the United States, to ZERO.” Trump also said PM Modi is committed to “BUY AMERICAN” at a much higher level. He added that India would purchase “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,” Trump wrote. “Prime Minister Modi and I are two people that GET THINGS DONE.”
Meanwhile, PM Modi also took to X and said, “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.” He further added that when two “large economies” and the “world's largest democracies” work together, “it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.”
PM Modi also talked about President Trump’s “leadership” in advocating for global peace, stability, and prosperity. The Prime Minister said, “India fully supports his efforts for peace.” He ended his post with the line, “I look forward to working closely with him to take our partnership to unprecedented heights.”
The commitment is set to span energy, technology, agriculture, and trade reforms, with leaders from both countries projecting the deal as a win for their economies and citizens alike.
With Inputs From IANS.
(SY)
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