In a significant breakthrough after months of tense negotiations and public sparring, Washington and New Delhi have sealed a trade deal that slashes US tariffs on Indian goods from 50 per cent to 18 per cent.

"India's agricultural sensitivities have been fully protected" in the India-US trade deal, which will reduce American tariffs on Indian goods to 18%, a senior government official told ANI on Tuesday.

The official's remarks have come amid speculation about agricultural market access concessions that India may have offered to secure the tariff reduction.

The government has adopted an approach to agricultural imports that ensures protection for sensitive farm products while maintaining consistency with India's established Free Trade Agreement (FTA) template.

(ANI)

US Trade Representative Jamieson Greer said, "It's a very exciting opportunity. On the one hand, we'll continue to maintain some level of tariff against India... but they've also agreed to reduce their tariffs for us on a variety of agricultural products, manufactured goods, chemicals, medical devices, etc."

.@USTradeRep Ambassador Greer on @POTUS' deal with India: "It's a very exciting opportunity. On the one hand, we'll continue to maintain some level of tariff against India... but they've also agreed to reduce their tariffs for us on a variety of agricultural products,… pic.twitter.com/8M3wZnGJ6P

— Rapid Response 47 (@RapidResponse47) February 3, 2026

Union Commerce Minister Piyush Goyal on Tuesday said the India-US trade deal is an agreement that every Indian can be proud of and it is under the final stages of detailing between the negotiating teams of the two countries.

Addressing a press conference here, he said that as soon as the final understanding of the deal is inked, joint statement is finalized and technical processes completed, details will be shared.

"Indians are celebrating a trade deal which is under the final stages of detailing between the negotiating teams of both countries. We will shortly be issuing a joint statement by both countries along with the details, which we will be shortly inking between the United States of America and India. As soon as the final understanding of the deal is inked and the joint statement is finalised, technical processes are completed, full details will be shared," he said.

(ANI)

Union Commerce and Industry Minister Piyush Goyal criticised Lok Sabha Leader of Parliament Rahul Gandhi over claims that PM Modi accepted the India-US trade deal under pressure. "Rahul Gandhi wants to mislead the public, he does not care about India's progress," the minister said.

India's Got Best Deal In Neighbourhood: Piyush Goyal On Agreement With US

India has got the best deal in neighbourhood: Commerce Minister Piyush Goyal on agreement with US.

"Today every Indian across the country is thanking Prime Minister Narendra Modi that he has made a very good trade deal with the United States of America, which the countrymen have been waiting for for many months. Keeping the national interest and public interest at the forefront, a trade deal that will enhance the future of a strong India has been finalised last night under the leadership of Prime Minister Narendra Modi", Union Minister Piyush Goyal said,

Union Commerce Minister Piyush Goyal addresses the Parliament on Tuesday over the India-United States trade deal, which reduces the tariffs on goods exported from India to 18 per cent.

The Kremlin stated that it had not heard from India about halting Russian energy purchases after US President Donald Trump said that New Delhi had agreed to stop buying it as a part of the India-US trade deal.

Prime Minister Narendra Modi on Tuesday said the India-US trade deal is a "big decision" that will benefit everyone in the country, and asserted that his government always works in favour of the nation.

The prime minister made these remarks at the meeting of the NDA Parliamentary Party, coalition MPs present at the meeting said.

NDA coalition members congratulated Modi for the trade deals with the EU and the US, saying it would strengthen Indian manufacturers, exporters and entrepreneurs.

The India-US trade deal agreed upon between US President Donald Trump and Prime Minister Narendra Modi does not compromise the interests of Indian farmers, top government sources told NDTV.

US President Donald Trump has announced the US-India trade deal, pledging to slash tariffs on Indian goods to 18 per cent from 25 per cent, bringing an end to months of uncertainty.

The Indian rupee soared on Tuesday after New Delhi and Washington announced a trade deal that slashed U.S. tariffs on Indian goods, a development that turned around indicators that previously pointed to sustained weakness in the currency.

Before the deal was announced overnight on Monday, the rupee was caught in a persistent trend of depreciation. The currency has slumped by about 5 per cent since the tariffs went into effect in late August.

The rupee recovered sharply on Tuesday and was last up nearly 1.2 per cent, on course for its biggest one-day gain in over three years. Concurrently, indicators that help investors gauge the future trajectory turned in the currency's favour.

The one-month non-deliverable forward points, which help gauge the path market participants expect the currency to take in the future, dropped to 8 paisa, their lowest level in over 3 months.

"The government is likely to issue a statement in parliament on the US-India trade deal," sources told NDTV.

US President Donald Trump said that India has agreed to stop buying Russian oil.

He said India agreed to buy more oil from the US and potentially Venezuela.

He added that India has agreed to purchase $500 billion worth of US energy, agriculture, coal and other products under the trade deal.

The new tariff structure makes Indian exports cheaper and more competitive in the US market.

The Indian stock markets opened higher this morning with Nifty jumping 750 points and Sensex opening 2,400 points higher hours after the much-awaited India-US trade agreement.

 Top American leaders said the trade deal announced by US President Donald Trump with “close partner” India will export more farm products from America to the massive Indian market and the agreement will also help counter Russian aggression.

“Congratulations to President Trump for a superb accomplishment on today’s trade agreement with India,” Senate Foreign Relations Committee Chairman Senator Jim Risch said in a post on X Monday.

He said he is “very glad to learn that the world’s oldest and largest democracy has agreed to reduce trade barriers with the United States.” Describing India as a “close partner” of the US, with a prominent diaspora in America, Risch said New Delhi is an integral partner in countering China's “malign influence" in the Indo-Pacific.

“Now, under this new agreement India has pledged to buy American. It will also help the US counter Russian aggression and in its work to bring an end to Russia’s war against Ukraine by cutting off India’s support of the Russian energy sector,” Risch said.

US Secretary of Agriculture Brooke Rollins thanked Trump for “once again” delivering for American farmers.

“New US-India deal will export more American farm products to India's massive market, lifting prices, and pumping cash into rural America,” she said in a post on X.

Noting that in 2024, America’s agricultural trade deficit with India was $1.3 billion, she said India’s growing population is an “important market” for American agricultural products and the deal will go a long way to reducing this deficit.

“America First victory on top of the dozens of deals for agriculture,” she said.

The India-US trade deal adds meaningful momentum to India's growth ambitions and supports the country's ambition to be a globally competitive manufacturing and innovation hub, industry leaders said on Tuesday.

Reacting to the trade agreement between the two countries, Mahindra Group CEO & Managing Director Anish Shah welcomed the development, terming it as "a significant step forward in strengthening bilateral trade and investment ties." "With the Indian economy on a strong growth trajectory, this deal adds meaningful momentum to India's growth ambitions," he noted.

Shah further said, "The immediate reduction in reciprocal tariffs on Indian exports to 18 per cent, 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." 

Expressing similar views, Aditya Birla Group Chairman Kumar Mangalam Birla said the reduced tariffs will help strengthen the strategic and economic ties between the two great countries and provide additional opportunities for investment and collaboration.

Stating that the Aditya Birla Group is the largest Indian investor in the US, he said, "We see this agreement help shape more resilient supply chains, unlock manufacturing opportunities and drive long-term economic competitiveness in both the US and India." 

Prime Minister Narendra Modi today thanked US President Donald Trump - "on behalf of the 1.4 billion people of India" - for reducing tariffs on Indian goods from 25 per cent to 18 per cent.

Indian refiners will need a wind-down period to complete Russian oil deals before imports from that country can be halted, and they have so far not been ordered by the government to stop such imports, two refining sources told news agency Reuters.

US President Donald Trump on Monday announced a trade agreement with Indian Prime Minister Narendra Modi that included a halt to Indian oil purchases from Russia.

Indian companies have already booked cargoes loading in February and arriving in March, so a wind-down period would be needed to fulfil existing commitments, the sources said. They spoke on condition of anonymity because they were not authorised to speak with the media.

The trade deal with India would slash US tariffs on Indian goods to 18 per cent from 50 per cent in exchange for India lowering trade barriers and stopping its purchases of Russian oil. It would buy oil instead from the US and potentially Venezuela.

India became the top buyer of discounted Russian seaborne crude after the 2022 outbreak of war in Ukraine, generating a backlash among Western nations that targeted Russia's energy sector with sanctions.

US Senator Lindsey Graham on Monday (local time) claimed that India has "earned" the reduction in tariffs under the newly announced India-US trade deal, linking the move to the decrease in Russian oil purchases by New Delhi amid the ongoing war in Ukraine.

In a post on X, Graham praised US President Donald Trump's approach, suggesting that economic pressure on Russia's energy customers is beginning to have an impact, citing the recent trade deal with India in which Washington reduced tariffs on India to 18 per cent.

"Well played, President Trump. I think your message about ending this war--by having Putin's customers who prop up his war machine have to recalculate--is working," he said.

The Senator claimed that New Delhi's conduct had justified the tariff reduction, stating that the other nations would also "follow India's direction".

"Through their behavior, India has more than earned this reduction. I'm hoping that the other big nations that buy Russian oil will follow India's direction," Graham added.

Linking the trade decision to broader geopolitical objectives, Graham said Russian President Vladimir Putin would only come to the negotiating table when pressure is intense.

"Putin will only come to the table when the pain is so great. We're not there yet, but with India's actions, we are moving closer. End the bloodbath in Ukraine now," he said.

US President Donald Trump has announced that Washington would reduce tariffs on Indian goods from 50 per cent to 18 per cent, in exchange for a promise from New Delhi to stop buying Russian oil, among other things.

 Union Minister Nitin Gadkari on Tuesday lauded Prime Minister Narendra Modi and US President Donald Trump over the announcement of the India-United States trade deal under which Washington has reduced tariffs on Indian goods to 18 per cent, stating that it will further strengthen the trust between both countries and will significantly boost confidence in business, trade, and investment.

Taking it to X, Gadkari stated that the agreement opens new avenues for growth and cooperation between the two countries.

"Today marks a defining step forward in India-US economic relations as the trade deal is finalised with tariffs reduced to 18%, opening new avenues for growth and cooperation. My heartfelt congratulations to PM Narendra Modi and President Donald Trump for their leadership in securing this historic outcome. The agreement strengthens trust, boosts business confidence, and sets the stage for deeper trade, investment, and shared prosperity for both nations," he wrote.

"Self-confidence is that power with the help of which everything is possible.  

This very power of the countrymen will prove extremely useful in realizing the dream of a developed India," PM Modi said in a post on X after announcement of India-US trade deal. 

"A significant milestone ! Under PM Modi's leadership, India continues to strengthen its economic footprint and emerge as a global growth magnet. Stronger India–US ties will continue to drive growth, propel innovation, boost investment, and strengthen prospects of job creation, thereby reinforcing global confidence in Made in India," said former Union Minister Smriti Irani

Leading American and Indian business advocacy groups hailed President Donald Trump's announcement of a breakthrough in US-India trade relations, calling the reduction of tariffs on Indian goods from 50 per cent to 18 per cent a "historic first step".

"We believe this trade deal announcement should lift a key overhang on Indian equities. The U.S. is India's largest trading partner and this helps cement the relationship of the two largest democracies of the world," said Prashant Paroda, Portfolio Manager, Allspring Global. 

"While actual details are awaited, we expect financials, renewables with exposure to the U.S. market and select textile companies to benefit. India has underperformed broader emerging markets index over the last year. Foreign investors who have been net sellers recently might also look to increase their weight to India in light of this announcement," he added.

"We believe the trade deal improves investor sentiment toward India. While the U.S. is India’s largest trading partner, exports to the U.S. account for less than 5% of India’s GDP. Nonetheless, U.S.–India trade frictions have weighed on foreign investor perception. This has been compounded by a global trade focused on AI, which has disproportionately benefited markets such as Taiwan and Korea," said Lakshman Venkitaraman, Associate Portfolio Manager, Wastach Global, Salt Lake City.
"In our view, the trade deal refocuses global investor attention on India and should help revive foreign investor interest in Indian equities. Importantly, domestic investors have remained committed to the India growth story, providing a strong base for renewed foreign inflows," he added. 

 The Indian rupee is set to rally sharply at open on Tuesday, supported by expectations that the U.S.–India trade deal will draw foreign investors back to Indian assets and alleviate hedging activity-related pressure.

The 1-month non-deliverable forward indicated the rupee will open in the 90.15-90.25 range versus the U.S. dollar, having settled at 91.5125 on Monday.

The deal, announced by U.S. President Donald Trump on social media following a call with Prime Minister Narendra Modi, effectively dismantles a punitive tariff regime that had seen duties on Indian goods exports climb to 50%, the highest in Asia.

By removing penalties linked to India's purchase of Russian energy and slashing reciprocal tariffs to 18%, the agreement is expected to encourage a return of foreign capital after record equity outflows in 2025 left the rupee under sustained pressure.

"The trade deal removes a chunk of policy and tariff uncertainty that had been weighing on Indian assets, opening the door for a near-term bounce in the rupee and equities via sentiment and foreign flows," said Marc Velan, head of investments at Lucerne Asset Management in Singapore.

The rupee was the worst-performing Asian currency in 2025, down nearly 5% for the year and more than 2% last month.

India’s External Affairs Minister S. Jaishankar on welcomed the US–India trade deal announced after talks between Prime Minister Narendra Modi and President Donald Trump, calling it a boost for jobs, growth, and innovation in both economies.

The minister arrived in New York on Monday on a three-day official trip to attend the Critical Minerals Ministerial being hosted by his American counterpart, Secretary of State Marco Rubio.

“This will create more jobs, spur growth and promote innovation in both economies,” Jaishankar said in a post on X. He said the agreement would strengthen “Make in India” efforts and encourage trusted technology ties. “A robust economic relationship is the strongest foundation for our strategic partnership,” he added.

"US and India are world’s largest democracies. Both countries are natural allies. Together, India and US have huge potential to work for peace and development," wrote Union Minister Ashwini Vaishnaw in a social media post on X.

"US 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. India-US Trade deal is a win-win deal. Citizens and industries of both countries will benefit greatly from this deal," he added.

US and India are world’s largest democracies. Both countries are natural allies. Together, India and US have huge potential to work for peace and development.
US and India have complementary strengths. Both countries can co-create technologies and co-develop solutions that will…

— Ashwini Vaishnaw (@AshwiniVaishnaw) February 2, 2026

Nations that have the lowest tariff agreement with the US include the United Kingdom (10 per cent), the European Union (15 per cent), Switzerland (15 per cent), Japan (15 per cent) and South Korea (15 per cent). 

Some of the countries facing the highest tariffs from the US include Brazil (50 per cent), Myanmar (40 per cent), Laos (40 per cent), China (37 per cent) and South Africa (30 per cent). 

Within Southeast Asia, countries facing higher duties include Vietnam (20 per cent), Bangladesh (20 per cent), Pakistan (19 per cent), Malaysia (19 per cent), Cambodia (19 per cent) and Thailand (19 per cent)

With the new deal in place, India is now among the nations facing one of the lowest tariff rates from the Donald Trump administration compared with other major Asian economies, including China, Pakistan, Indonesia, Bangladesh and Vietnam. However, the duties levied by the US on trade with India are slightly higher than those imposed on its European partners and by Japan and South Korea.

India stands to gain significantly from the India-US trade deal, with reciprocal tariffs slashed from a punitive 50% to 18%, boosting export competitiveness and easing market access to the US. The agreement is expected to revive growth in manufacturing and services, strengthen energy security through diversified oil and gas supplies, create space for domestic economic reforms, and enhance India's global trade and diplomatic standing.

Good news for #MadeInIndia products. They will now face reduced tariff of 18%.
Thanking the leadership of PM @narendramodi and @POTUS for this development.
People of our two large democracies stand to benefit. #IndiaUSRelations

— Nirmala Sitharaman (@nsitharaman) February 3, 2026

A landmark moment for India-US relations as a historic trade deal has been finalised, bringing tariffs down to a significantly lower 18% and opening a new chapter of deeper and greater economic cooperation.
I congratulate Prime Minister @narendramodi and US President…

— Rajnath Singh (@rajnathsingh) February 2, 2026

Industrialist and Chairman of RPG Enterprises Harsh Goenka hailed the India-US trade deal, where Washington reduced the tariffs on India to 18 per cent, describing it as the "Father of all deals".

In a post on X, Harsh Goenka said that this deal was a "great achievement" which came days after the conclusion of the "Mother of all deals" with the European Union, which took place during the state visit of the President of the European Council, Antonio Costa, and the President of the European Commission, Ursula von der Leyen, in India last month.
"First the Mother of all deals with EU, now the Father of all deals with US - great achievement by PM Modi government! Patience pays," the Chairman of RPG Enterprises said.

Maharashtra Chief Minister Devendra Fadnavis lauded the announcement of the India-US trade agreement, referring to it as "a new chapter of friendship" between the two nations.

He added that it would help Maharashtra by providing access to significant investments in cutting-edge technologies, such as artificial intelligence.
Fadnavis took to X, posting, "A New Chapter of Friendship! The historic trade agreement between India and the United States is truly a victory of the friendship between Hon. Prime Minister Narendra Modi ji and the President of the United States, Donald Trump. This is also an extremely important moment for global trade. India will now receive preferential tariff rates from the United States among the world's major exporting economies. This marks the beginning of a new era in India-US friendship."

The United States and India are the world’s largest democracies. Today’s developments in India–US cooperation mark a major leap for our economic future.
With new markets opening up for Made in India products, our youth and farmers will see greater opportunities than ever…

— Nitin Nabin (@NitinNabin) February 2, 2026

Welcome the announcements on bilateral trade following the conversation between PM @narendramodi and President @realDonaldTrump.

This will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavors and encourage trusted…

— Dr. S. Jaishankar (@DrSJaishankar) February 2, 2026

 The US-India Strategic Partnership Forum (USISPF) on Monday welcomed President Donald Trump's announcement to bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, describing it as "an important and positive first step."  India and the US agreed on a trade deal under which Washington will bring down the reciprocal tariff on Indian goods, US President Donald Trump announced on Monday in a Truth Social post after a conversation with Prime Minister Narendra Modi.

"While the agreement's specifics are pending, today's announcement signals strong political will on both sides to move toward a comprehensive US–India Bilateral Trade Agreement (BTA) that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors," USISPF said.

A big day for India-US relations as the trade deal has been locked with a significantly reduced tariff of 18%, paving the way for stronger trade ties and mutual growth.
I congratulate PM @narendramodi and President @realDonaldTrump for this historic deal, which will elevate our…

— Amit Shah (@AmitShah) February 2, 2026

Congratulations to Prime Minister @NarendraModi ji and President @RealDonaldTrump, as well as to the people of India and the United States, on the landmark trade agreement. This reflects the power of two like-minded, fair-trading democracies working together for shared…

— Piyush Goyal (@PiyushGoyal) February 2, 2026

A big WIN for a consequential partnership under the leadership of Prime Minister Narendra Modi @narendramodi and President Donald Trump @POTUS
India and USA announce trade deal
creating vast new opportunities for the two economies and the people of our two great nations.… https://t.co/kzuwBm25KX

— Amb Vinay Mohan Kwatra (@AmbVMKwatra) February 2, 2026

Trump's tariff cut announcement after call with PM Modi has acted as a high-octane fuel for the Indian stock indices, with the Nifty futures, or GIFT Nifty, already skyrocketing by over 600 points in overnight trade.

US and India are world’s largest democracies. Both countries are natural allies. Together, India and US have huge potential to work for peace and development.
US and India have complementary strengths. Both countries can co-create technologies and co-develop solutions that will…

— Ashwini Vaishnaw (@AshwiniVaishnaw) February 2, 2026

US tariffs on competing exporting economies:

India 18%

Indonesia 19%

Vietnam 20% 

Bangladesh 20%

China: 34%

US Ambassador to India, Sergio Gor, told NDTV that the total tariff on India will be 18 per cent, which is a 32 per cent cut.

"Tonight is a night of celebration," US Ambassador Sergio Gor To NDTV.

President Trump's announcements come a day after India announced a budget, a part of which is geared at tackling the hurdles created by Trump's 50 per cent tariff on Indian goods.

Trump claimed that India has "agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!"

"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.

Here’s a timeline of events since Trump imposed a 50 per cent tariff on Indian goods being shipped to the US:
2025
April 2: The US imposed a 26 per cent "reciprocal tariff" on several Indian imports under his global "liberation day" tariff actions.
April 10: Trump paused the tariffs for 90 days and maintained a 10 per cent duty on all US imports.
July 31: Trump announced a 25 per cent tariff on all Indian goods and said it would levy a penalty if India continued to buy Russian oil.
August 7: Trump boosted to 50 per cent tariffs on Indian goods being shipped to the US, citing India’s continued purchase of Russian oil. The tariff on Indian goods was the highest among US trade partners.
2026
February 2: Trump announces tariffs reduced from 25 per cent to 18 per cent on Indian goods.

"The reduction of India's reciprocal tariff from 25% to 18% marks an important and positive first step. While the agreement's specifics are pending, today’s announcement signals strong political will on both sides to move toward a comprehensive U.S.–India Bilateral Trade Agreement (BTA) that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors. A BTA between the two nations would deliver meaningful benefits for businesses, workers, and consumers in both countries, while strengthening supply chains and economic resilience,"  US India Strategic Partnership Forum said in a statement.

PM Modi and US President held a call before he announced the 'US-India Trade Deal'. "President Trump just spoke with Prime Minister Modi. STAY TUNED…" US Ambassador Sergio Gor posted on X, teasing the announcement.

US President Donald Trump today announced a trade deal with India, and called Prime Minister Narendra Modi "one of my greatest friends". Trump said the US will charge a reduced reciprocal tariff of 18 per cent, down from 25 per cent.

"President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace," PM Modi said in his post thanking Trump for slashing US tariffs.

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.
When two large economies and the…

— Narendra Modi (@narendramodi) February 2, 2026

After Donald Trump announced a trade deal between India and United States, US Ambassador to India, Sergio Gor said that the relationship between both the countries has limitless potential.

"As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL," he posted on X.

As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!

— Ambassador Sergio Gor (@USAmbIndia) February 2, 2026

"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," Trump wrote on Truth Social.

US-India Trade Deal Live Updates: US President Donald Trump announced a trade deal between India and the United States on Monday, adding that the US reciprocal tariffs on India would be slashed to 18 per cent.