US-India Trade Deal Sends 'Positive Psychological Message': USIBC Head

(MENAFN- AsiaNet News)

The President of the US-India Business Council (USIBC) at the US Chamber of Commerce, Atul Keshap, has welcomed the recently announced India-US trade deal, in which Washington reduced the tariff on Indian goods to 18 per cent, saying that the agreement sends a "very positive psychological message" to the investment and trading communities of both nations.

Speaking to ANI on the agreement, Keshap said the deal reflects nearly a year of intensive negotiations and "a great deal of serious effort", praising the contributions of key officials, including Ambassadors Sergio Gor and Vinay Kumar Kwatra, as well as Union Commerce Minister Piyush Goyal and US Trade Representative Ambassador Jamieson Greer. He also noted that details of the agreement will likely be released in a joint statement or Federal Register notice.

"It sends a very positive psychological message to the investment and trading communities in both of our great democracies. As the president of a 50-year-old trade association dedicated to enhancing US-India business ties and investment, this is perfect. This is what the business community wants. We are very, very happy that Prime Minister Modi and President Trump have made this announcement. There will likely be a joint statement in the coming days, and we may also see some Federal Register notices. We will look closely at the details to understand what is included and what implications it may have for business," Keshap stated.

"I must applaud the two governments for the work they have done. This has been a long negotiation, almost a year's worth of work, and a great deal of serious effort has gone into it. I applaud Ambassadors Gor and Kwatra for leading all of this. Also, Minister Piyush Goyal and Ambassador Greer," he added.

Trump Announces Deal, Cites 'Friendship' with Modi

Earlier on Monday, Trump said that the US and India "have agreed to a trade deal" with Washington reducing the reciprocal tariff from 25 per cent to 18 per cent "out of friendship and respect" for PM Modi. In his Truth Social post, Trump referred to his conversation with PM Modi earlier in the day, noting that the Prime Minister was one of his closest friends and a powerful, respected leader of India. The US President also claimed that PM Modi had agreed to "stop buying Russian oil" and to buy much more from the US, and further noted that India would reduce tariffs and non-tariff barriers against the US.

"It was an Honor 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. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," Trump said in his post.

"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%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO," he added.

PM Modi Expresses Delight Over Reduced Tariffs

Following Trump's post, Prime Minister Narendra Modi, on X, said it was wonderful to speak with his "dear friend President Trump" and expressed delight that "Made in India products will now have a reduced tariff of 18%".

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," PM Modi wrote in a post on X.

A 'Milestone' for Future Growth and Predictability

The USIBC President also highlighted that the US-India economic relationship has long lagged behind their strategic ties and emphasised that this agreement represents the first step--Phase 1A--in a series of initiatives aimed at boosting bilateral trade. He added that the agreement could help increase US-India trade in goods and services to USD 500 billion annually, elevating the economic relationship to match the strength of the strategic partnership, describing the deal as a milestone for predictability, ambition, and growth in US-India trade relations.

"This is the beginning of what could be many chapters to come. One reason why I left government service and went into the private sector was my feeling that the strategic relationship was far outpacing the economic relationships. The US-India trade and business relationship is woefully underpowered compared to our relations with Canada, Mexico, the EU, and even China--with which we have some strategic issues," Keshap said.

"So the work of USIBC these past few years, indeed for the past 50 years, has argued for ambition in our trade relations. There have been almost no trade and economic agreements between the United States and India in our 75 years of bilateral relations. We have an open skies treaty. This is Phase 1A of what could be many more agreements to come that will concretise and create greater predictability in our relationship, such that we can hit 500 billion dollars a year in bilateral trade in goods and services and vault US-India trade into the front ranks of global prosperity," he added. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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