The United States has agreed to sharply reduce tariffs on Indian goods, marking a major reset in bilateral trade relations after months of tension. Following a phone conversation between US President Donald Trump and Prime Minister Narendra Modi, Washington will cut import duties on Indian products to 18% from the earlier 50%, US officials said.
" After years of trade tensions, the United States and India have reached a long-awaited trade truce, marking a reset in bilateral economic relations. Under the truce, the US has agreed to roll back these punitive tariffs, restoring a more predictable and workable trade environment for Indian exporters. In return, India has offered improved market access for select US goods and signalled willingness to align more closely with US priorities on energy and strategic supply chains. Washington increasingly views India as a central partner in diversifying global supply chains away from over-dependence on China. The truce reflects this strategic logic rather than a full resolution of long-standing trade disputes. Structural differences on subsidies, market access, and industrial policy remain, but both sides have chosen stability over escalation."
- Rajesh K., CFP®️, Founder & CEO | BlissMoney Research, an Independent, analytics and data-driven financial research firm.
Mr. Dhiraj Relli, MD & CEO, HDFC Securities on the India-US Trade deal-
"We welcome the announcement of a landmark trade agreement between the Republic of India and the United States of America. Under this agreement, the United States will reduce tariffs on Indian goods from 25 per cent to 18 per cent, effective immediately, a move that significantly enhances India's competitive position in global markets. At 18 per cent, India's tariff rate is now lower than that of several major Asian trading partners, supporting growth in labour-intensive and export-oriented sectors such as textiles, gems and jewellery, and engineering goods.
The agreement also removes the additional 25 per cent duty previously applied to India's Russian crude oil purchases, bolstering bilateral economic cooperation and offering greater stability to both the rupee and domestic markets.
This development reinforces the longstanding partnership between our two nations and reflects our shared commitment to expanding trade, investment and strategic ties for mutual economic benefit."
Mr. Navneet Munot, MD & CEO, HDFC AMC on the India-US Trade deal-
" Kudos to our leadership for a successful India-US trade deal that's anchored in mutual respect, strategic autonomy, and the shared objective of global stability and prosperity. It's a wonderful news coming on the back of a highly pragmatic, growth oriented Budget and a series of reforms."
Mr. Masaharu Morita, Founder and Program Director, NURA - Ai Health Screening Centre
"The Union Budget 2026 places longevity and chronic disease management at the centre of India's healthcare and life sciences agenda. The ₹10,000-crore Biopharma Shakti initiative recognises the growing burden of non-communicable diseases and the need to scale investments in biologics, diagnostics, early screening and clinical research. This marks a clear shift from episodic care to long-term health management, with prevention and quality of life as core priorities. Equally significant is the Budget's focus on accelerating AI adoption across healthcare, education and research. By integrating life sciences with AI-enabled screening, clinical decision-making and talent development, the government is laying the foundation for a future-ready healthcare ecosystem one that supports healthier, longer lives and strengthens India's position as a global hub for healthcare innovation"
Union Budget 2026 Quote - Mr. Kartik Daftari, Managing Director & CEO at Hi-Tech Radiators Pvt. Ltd
"The Union Budget 2026 sends a strong and reassuring signal to industry by placing technology-led manufacturing at the centre of India's growth strategy. The ₹40,000 crore India Semiconductor Mission 2.0, expanded electronics manufacturing incentives and record capex of ₹12.2 lakh crore will significantly strengthen domestic supply chains and reduce import dependence in critical components. Equally important is the focus on rare earth corridors, chemical and capital goods parks and MSME enablement, which will deepen upstream capabilities and improve export competitiveness.
This is a budget that translates scale into opportunity - driving investment, job creation and sustained global relevance for Indian manufacturing."
Suketu Shah, CEO, Vishal Fabrics Ltd.:
"After several months of closely followed negotiations and tariff issues, the India-US trade agreement is a positive development towards trade and exports. The US tariff on Indian products was as high as 50% on most Indian exports, which has now been lowered to 18%, making India more competitive in the US market, especially in the manufacturing category.
The trade agreement provides several opportunities for diversified markets and accelerates scale-up plans for many textile and apparel categories. We think the true impact will be a function of how quickly the changes can be implemented and how well manufacturers can navigate cost and scale."
"From a startup and scale-up lens, Budget 2026 sends a clear signal of stability and intent. The ₹10,000-crore MSME Growth Fund meaningfully improves access to growth capital, which directly supports business expansion and hiring momentum across early and mid-stage companies. The continued focus on deep-tech and manufacturing through India Semiconductor Mission 2.0 strengthens India's long-term innovation capacity and positions startups to compete globally.
While the budget stays fiscally prudent on taxation, the predictability it offers allows founders to plan capital allocation, talent investments, and international expansion with greater confidence. For the ecosystem, this is less about short-term relief and more about building scalable, globally relevant Indian enterprises."- Sandeep Balaji, Founder and CEO, IncrementumX.
