‘Expand and Deepen Trade Between Two Largest Economies’: Revenue Secretary Arvind Shrivastava on India-US Trade Deal

New Delhi: The India-US trade deal will significantly expand bilateral commerce and deepen cooperation between the world’s two largest economies, Secretary, Department of Revenue, Ministry of Finance, Arvind Shrivastava, said, underlining its impact on manufacturing, jobs and technology collaboration.

“The India-US trade deal will further expand and deepen trade between two of the largest economies of the world. It will create more opportunities for our labour-intensive and manufacturing sectors in the US market and give impetus to mutually beneficial collaboration in high and advanced technology sectors.”

Shrivastava’s remarks come after US President Donald Trump formally announced the agreement, bringing months of tariff-related negotiations to a close and signalling a fresh phase in India-US economic relations.

Trump announces tariff cut, calls Modi a close friend

Trump revealed the decision through a post on Truth Social, confirming that the United States would reduce reciprocal tariffs on Indian goods from 25 per cent to 18 per cent.

“It was an honour to speak with Prime Minister Modi of India this morning. He is one of my greatest friends and a powerful and respected leader of his country.”

Trump said discussions covered trade and global issues, including the Russia-Ukraine war, adding that India would reduce tariffs and non-tariff barriers against the US.

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25% to 18%.”

He further claimed that India had committed to increasing purchases of American goods.

“The Prime Minister also committed to ‘BUY AMERICAN’ at a much higher level, in addition to over $500 billion dollars of US energy, technology, agricultural, coal and many other products.”

ALSO READ: From Tariffs to Triumph: ‘Father of All Deals’ Trends Online After India-US Trade Deal

PM Modi welcomes tariff relief

Responding to Trump’s announcement, Prime Minister Narendra Modi welcomed the reduced tariffs, calling it a win for Indian producers and exporters.

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%.”

He added that cooperation between the two democracies would unlock new economic opportunities.

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.”

Modi also praised Trump’s leadership, linking stronger bilateral ties to global peace and stability.

‘Historic Trade Deal’: Kiren Rijiju

Union Minister of Parliamentary Affairs Kiren Rijiju described the agreement as a historic achievement under Modi’s leadership.

“Historic trade deal has been sealed with the USA under PM Modi’s leadership. This comes within a week of the India-EU Free Trade Agreement. Last midnight, we received this positive update.”

Mother of all deals: India-EU FTA 

The announcement comes a week after another major development on the global trade front between India and the European Union have concluded discussions on a long-pending Free Trade Agreement, marking a significant step toward strengthening economic ties.

Visiting EU leaders described a “successful India” as being in the best interests of the global economy, with officials in New Delhi confirming that official-level talks have been wrapped up.