New Delhi, Feb 5 (UNI) India and the United States are entering a new phase of closer bilateral ties, marked by a historic trade deal and expanding strategic cooperation, the Ministry of External Affairs (MEA) said here on Thursday.
The ministry said Prime Minister Narendra Modi noted that products made in India would be exported to the United States at reduced tariffs under the agreement.
Foreign ministry spokesperson Randhir Jaiswal said the deal was expected to provide a major boost to India’s labour-intensive industries, create new jobs and support economic growth. The US side has clarified that the final tariff rate under the agreement will be 18 per cent, he said.
Jaiswal said, “The Prime Minister had a teleconference with President Trump. Following that call and President Trump’s tweet, the Prime Minister thanked him for the reduction in reciprocal tariffs. The Prime Minister noted that made-in-India products will now be exported to the United States at a reduced tariff of 18 per cent.”
The spokesperson said the trade agreement will give a major boost to “our exports to the United States.”
It will significantly benefit labour-intensive industries in India, “create new job opportunities, and promote growth and prosperity for our people. The US side has also clarified that the final figure of the tariff is 18percent,” he added.
“The final figure of the tariff is 18 per cent ,” MEA spokesperson Randhir Jaiswal reiterated, adding that the agreement would significantly boost Indian exports, particularly in labour-intensive industries, and create jobs.
“Engagement at the highest levels is currently happening. The United States is ready to elevate this relationship even further,” US Ambassador to India Sergio Gor said, emphasizing the “limitless potential” of the partnership.
Separately, wrapping up his visit to Washington, External Affairs Minister S Jaishankar said on Thursday said his engagements as “productive and positive,” and thanked US Secretary of State Marco Rubio for his hospitality.
Jaishankar said, “It opens a new phase in our bilateral ties, with vast possibilities,” he said, adding that cooperation on critical minerals, defence, energy, and strategic issues is advancing rapidly.
Commerce and Industry Minister Piyush Goyal had earlier said the first tranche of the agreement is ready, with a joint statement expected within four to five days. A formal legal agreement is likely to be signed by mid-March, after which the US is expected to issue an executive order to implement the tariff cut.
Commerce Secretary Rajesh Agrawal noted that the US tariff reduction could be executed through executive action, while any reduction in India’s most-favoured-nation tariffs would require the completion of the legal agreement.
Negotiations on the bilateral trade agreement began after Modi’s visit to the US in February 2025. The deal aims to more than double bilateral trade from about $191 billion to USD 500 billion by 2030.
Goyal told Parliament that India protected sensitive sectors such as agriculture and dairy during negotiations, while both sides secured key interests after nearly a year of talks. He added that Indian orders for US aircraft, engines, and related equipment alone were expected to exceed $100 billion.
