Washington, Feb 3 (IANS) India’s Ambassador to the United States Vinay Mohan Kwatra on Monday welcomed the India–US trade announcement, calling it “a big WIN for a consequential partnership” under the leadership of Prime Minister Narendra Modi and President Donald Trump.
In a post on X, Kwatra said, “India and the USA announce 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.”
The announcement also drew attention from noted US economist Steve Hanke, who pointed to India’s recent policy steps linked to trade, growth and supply-chain resilience.
“India is reducing import taxes on capital equipment needed to process critical minerals and make lithium-ion battery cells. The policy aims to minimise dependence on China,” Hanke said in a post, adding, “MODI = FREE TRADE = GROWTH.”
Industry leaders welcomed the development as well, with the US-India Strategic Partnership Forum saying the announcement signalled strong political intent on both sides to deepen economic ties and move toward a broader trade agreement.
In a statement, USISPF said it “enthusiastically welcomes President Donald J. Trump’s announcement following his conversation with Prime Minister Narendra Modi, which reaffirms their shared commitment to deepen the US–India economic partnership and advance a bilateral trade agreement.”
The forum described the reduction of India’s reciprocal tariff from 25 per cent to 18 per cent as “an important and positive first step,” even as it noted that the details of the agreement are still to be finalised.
“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,” the statement said.
According to USISPF, a bilateral trade agreement would “deliver meaningful benefits for businesses, workers, and consumers in both countries,” while also strengthening supply chains and improving overall economic resilience.
The forum emphasised that both governments have made clear that the announcement marks the beginning of a longer negotiating process.
“Both governments have made clear that this is only the beginning, with additional phases and negotiations anticipated in the months ahead,” USISPF said, adding that it was encouraged by the “constructive momentum” created by the latest announcement.
USISPF reiterated its commitment to working closely with both the Government of India and the US Government to advance the shared objective of expanding bilateral trade toward the $500 billion target.
“A stronger US–India trade and investment relationship is not only critical to both economies but also central to advancing a stable, resilient, and rules-based Indo-Pacific,” the statement said.
–IANS
int/lkj/uk