04 February,2026 08:14 AM IST | Mumbai | Shailesh Haribhakti
Sectors such as textiles may benefit from the deal. Representation Pic
The World Trade Centre (WTC) Mumbai and the All India Association of Industries welcome the announcement of the conclusion of the long-awaited India-US trade deal. This is a milestone that strengthens one of the most consequential economic partnerships of the 21st century. The agreement reflects a shared commitment and efforts made by Prime Minister Narendra Modi and US President Donald Trump to deepen trade, investment, and supply-chain cooperation amid evolving global economic dynamics.
The announcement of the thaw in trade relationship had President Trump tweeting about the conclusion of the deal, which reduced the reciprocal tariff rate to 18 per cent and removed the 25 per cent tariff owing to Russian crude oil purchases. After the India-EU trade deal, it was expected that a deal would be announced, but it was the timing that was suspenseful. The announcement is timely and very good.
This is a strategic step that reinforces confidence among businesses and investors on both sides. It reflects a shared vision to build resilient supply chains, promote innovation-led growth, and unlock the full potential of India-US economic cooperation. The agreement is significant in the current global context, where exporters are seeking diversification, resilience and trusted partnerships amidst turbulence. India's growing manufacturing base, large consumer market, skilled workforce, and reform-driven policy environment complement the United States' strengths in technology, capital, and innovation, creating a mutually reinforcing partnership.
Prima facie, any agreement for a trade deal will be beneficial for MSMEs and startups, enabling them to integrate more effectively into global value chains, access advanced technologies, and expand their presence in international markets. However, in the absence of fine print, its full impact will be difficult to assess since India-US trade covers almost all sectors economy. However, the immediate relief in tariff is important as our recent agreements with the UK, EU, and New Zealand will only come into force in six to eight months. The goal of doubling trade to USD 500 billion will complement India's efforts to make export as an engine of growth to achieve the status of a $10 trillion economy by 2030. This will also support capital flow to the country, strengthening the position of the rupee vis-Ã -vis other currencies. We will see the rupee strengthen against the dollar in a few days.
This trade deal, when complemented with the Union Budget 2026-27, offers a window of opportunity for the country. It will propel us into a new age economy. Moreover, the expected broad base nature of the deal will hopefully support sectors like textiles, gems and jewellery, marine products, and engineering goods. While I am amused at the âMogambo khush hua/hai' jibe by the Congress, I would urge the Opposition to offer sincere suggestions and healthy, constructive criticism. Criticising simply for the sake of it, leads nowhere. I do not know about Mogambo khush hai or hua, but India and the Sensex certainly khush hua.
The writer is chairman of the World Trade Centre Mumbai and president of All India Association of Industries
