India–US Trade Deal: Jaishankar, Goyal Hail Agreement Congress Flags ‘Trump-Nirbharta’

NEW DELHI,Jan 03 : India and the United States have unveiled a bilateral trade deal that brings down US tariffs on Indian goods to 18 per cent with immediate effect, following a phone conversation between Prime Minister Narendra Modi and US President Donald Trump.

The move, which comes after months of strained trade relations, was welcomed by senior government leaders as a major boost to bilateral ties, while the Opposition raised concerns over the process and optics of the announcement emerging first from Washington.

The tariff reduction follows a turbulent phase in India–US trade, during which US duties on Indian products had been raised sharply, at one point touching 50 per cent. The revised rate represents a significant rollback and signals a thaw in economic engagement between the two countries.

Govt sees boost to strategic partnership

External Affairs Minister S Jaishankar, who is currently visiting the United States, said the agreement would deepen both economic and strategic cooperation.

In a post on X, Jaishankar said the trade understanding would generate jobs, accelerate growth and innovation, strengthen the Make in India initiative and expand trusted technology partnerships. He added that strong economic ties form the bedrock of a durable strategic relationship.

Jaishankar is in the US to participate in the Critical Minerals Ministerial hosted by Secretary of State Marco Rubio, which focuses on supply chain resilience, clean energy transitions and cooperation in critical minerals. He is also scheduled to hold meetings with senior US officials.

Indian Ambassador to the US Vinay Mohan Kwatra described the agreement as a landmark moment, saying it opens a new phase of opportunity for both economies and reflects leadership driven momentum in bilateral relations.

President Trump said the revised tariff structure would take effect immediately, with the US levying a reciprocal duty of 18 per cent, down from 25 per cent. Earlier, tariffs had been cut from 50 per cent following discussions between the two leaders. The higher duties had included penalties linked to India’s energy purchases from Russia.

US Embassy spokesperson Christopher Elms confirmed that the final tariff rate on Indian goods now stands at 18 per cent.

Commerce and Industry Minister Piyush Goyal termed the agreement transformative, saying it would benefit entrepreneurs, MSMEs, farmers and skilled professionals, while enhancing access to advanced US technologies. He said the partnership aligns with India’s long-term development goals, including Viksit Bharat 2047.

Union Minister Ashwini Vaishnaw also welcomed the deal, calling it a win-win outcome for industries and consumers in both countries. The US–India Strategic Partnership Forum echoed similar sentiments, highlighting renewed commitment to expanding economic cooperation.

Congress questions process, flags dependence

The announcement, however, drew sharp criticism from the Congress, which questioned why details of a major national decision were first communicated by US officials.

Senior Congress leader Jairam Ramesh described the situation as “Trump-nirbharta”, alleging growing dependence on announcements from Washington rather than New Delhi. He said the pattern raised concerns over transparency and leverage in bilateral dealings.

In a series of posts, Ramesh linked the trade deal to previous statements by Trump on India’s foreign policy decisions, including claims related to Operation Sindoor and India’s energy imports, remarks that New Delhi has earlier rejected.

Prime Minister Modi later confirmed the conversation with Trump and welcomed the tariff cut, saying reduced duties on Made in India products would benefit Indian exporters and strengthen global cooperation. He thanked the US President for the decision and expressed confidence that closer India–US engagement would contribute to economic growth and international stability.

The development comes close on the heels of India concluding free trade agreement negotiations with the European Union, underscoring New Delhi’s broader push to expand global market access amid shifting trade dynamics.