The announcement of a landmark India–US trade agreement, including a sharp reduction in reciprocal tariffs, has been welcomed by business leaders, market experts and industry bodies. Stakeholders said the deal could strengthen bilateral economic engagement and unlock long-term opportunities across sectors, even as they cautioned that the final impact will depend on how the agreement’s details are implemented in the coming months.
Industry leaders described the agreement as a positive first step towards deeper trade and investment ties between the two countries, especially at a time of shifting global supply chains and geopolitical realignments.
Nilesh Shah, managing director of Kotak Mahindra Asset Management Company, said the agreement removes a major source of uncertainty that had been hanging over Indian markets.
He said the India–US trade negotiations had moved through several ups and downs, but the deal now lifts a key overhang on the rupee, equity markets and interest rates. While the finer details will be critical, Shah said the agreement opens the door for a mutually beneficial outcome, as both countries have much to gain through closer economic cooperation.
Deepak Agrawal, chief investment officer for debt at Kotak Mutual Fund, said the tariff reduction could improve India’s macroeconomic outlook.
He noted that lower tariffs on Indian exports to the US are expected to support economic growth, narrow the balance of payments gap and strengthen the rupee. The move could also help build foreign exchange reserves and attract foreign institutional investors. Agrawal added that improved macro stability could lead to more stable interest rates and better equity market valuations over time.
Aditya Birla Group chairman Kumar Mangalam Birla said the agreement would deepen both strategic and economic ties between India and the US.
He said reduced tariffs would create new opportunities for investment and collaboration, help build resilient supply chains and unlock manufacturing potential in both countries. According to Birla, the deal could enhance long-term competitiveness and support sustainable growth across industries.
Business leader Sanjiv Goenka also welcomed the agreement, crediting India’s leadership for advancing the country’s economic interests globally. He said the outcome reflected persistence and an India-first approach in trade negotiations.
The US–India Strategic Partnership Forum described the tariff reduction as an important and positive first step towards a broader bilateral trade agreement. It said the announcement signals strong political will on both sides to move towards a comprehensive pact that would benefit businesses, workers and consumers, while strengthening supply chains and economic resilience. The forum reiterated its support for expanding bilateral trade towards the $500 billion target.
Exporters, however, flagged areas of sensitivity. Engineering Export Promotion Council president Pankaj Chadha said tariffs on industrial goods had already been discussed earlier, but agriculture and dairy remain clear red lines for India. He added that geopolitical shifts may have helped accelerate the deal.
The trade agreement follows a phone call between US President Donald Trump and Prime Minister Narendra Modi. Under the deal, tariffs on Indian goods entering the US will be cut from 50 percent to 18 percent. India will also work towards reducing tariffs and non-tariff barriers on US goods and increase purchases of US energy, technology, agriculture and other products.
Both leaders said the agreement would significantly strengthen economic cooperation between the two countries.