The announcement of a landmark trade deal between India and the US, including a reduction in reciprocal tariffs, has drawn reactions from business leaders, market experts and industry bodies. Stakeholders welcomed the move, saying the deal could strengthen bilateral economic ties and open up long-term opportunities across sectors, although they warned that finer details would be crucial.
Deal removes ‘hanging sword’ over rupee Shares: Nilesh Shah
Kotak Mahindra AMC MD Nilesh Shah said the deal removes a major source of uncertainty hanging over Indian markets.
“The India-US trade deal has been a rollercoaster of ups and downs. While the devil is in the details, it is removing the hanging sword over the rupee, equity and rate markets. Hopefully, it is a win-win deal for both countries as they stand to gain a lot through cooperation,” he said.
Strengthening the economy, rupee and capital flows
Deepak Agrawal, CIO-Debt at Kotak Mutual Fund, said the tariff cuts could improve India’s macroeconomic outlook.
“The reduction in tariffs on Indian exports to the US is indeed a welcome step that is expected to boost the Indian economy. This development is likely to improve the country’s balance of payments gap, strengthen the rupee, increase foreign exchange reserves and attract foreign institutional investors,” he said, adding that stable rates and better stock valuations could follow.
Reduced tariffs to boost Indo-US investment ties: Kumar Mangalam Birla
Aditya Birla Group Chairman Kumar Mangalam Birla said the agreement will strengthen economic and strategic cooperation between the two countries.
“Reduced tariffs will help strengthen strategic and economic ties between our two great countries and provide further opportunity for investment and cooperation,” Birla said, adding that the agreement could help build resilient supply chains, unlock manufacturing opportunities and foster long-term competitiveness in both economies.
Businessman Dr Sanjiv Goenka also welcomed the development and praised the Indian leadership.
“Anchored by the resolute leadership of Honorable Prime Minister Narendra Modi, the tenacity and Indian approach continue to advance India’s economic interests on the global stage,” he said in a post.
USISPF sees ‘positive first step’
The US-India Strategic Partnership Forum (USISPF) described the tariff cuts as an “important and positive first step” towards a broader bilateral trade agreement.
“While the specifics of the agreement are awaited, today’s announcement signals strong political will on both sides to move toward a comprehensive US-India bilateral trade agreement,” USISPF said.
She added that such a pact would bring meaningful benefits to businesses, workers and consumers while strengthening supply chains and economic resilience, and reiterated her support for expanding bilateral trade towards the $500 billion target.
Red line flag exporters
Engineering Export Promotion Council chairman Pankaj Chadha said industrial tariffs are already on the table while underlining India’s sensitivity.
“As far as tariffs on industrial goods are concerned, we have already offered zero tariffs a few months ago. Our red line still remains agriculture and dairy,” Chadha said, adding that geopolitical shifts may have helped move the deal forward.