In a weekly briefing, MEA spokesperson Randhir Jaiswal said that the agreement aims to strengthen and deepen India-US two-way trade in goods and services, increase market access, and reduce tariff and non-tariff barriers.
US Commerce Secretary Howard Lutnick on Friday expressed optimism about India-US trade ties, emphasizing the need for India's agricultural trade to open up amid US President Donald Trump's plans to impose reciprocal tariffs on US trading partners, including India.
India's export growth has been hampered over the past decade due to a combination of high import tariffs and low foreign direct investment (FDI) in mid-tech manufacturing sectors, according to a report by HSBC.
The Indian chemical industry is set to gain from the United States recent decision to impose strict tariffs on China, Canada, and Mexico, according to a report by Prabhudas Lilladher.
Explaining the modifications, Trump said, "During this interim period, between now and April 2nd, this makes it much more favourable for our American car manufacturers."
"Believe it or not, despite the terrible job he's done for Canada, I think that Justin Trudeau is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister. So much fun to watch!" Trump stated in a post on his social media platform Truth Social.
Union Finance and corporate Minister Nirmala Sitharaman on Thursday said that the impact of the US tariffs will be felt on India, adding that Union Minister Piyush Goyal is going to America and holding talks with the government there.
India's real gross domestic product (GDP) growth would be steady at 6.5 per cent in fiscal 2026 despite uncertainties stemming from geopolitical turns and trade-related issues led by US tariff actions, said Crisil Intelligence on Thursday.
On the outset of trade wars with the United States, Beijing pledges to make domestic demand its main economic driver. The escalating trade war with the US is hitting Chinese exports, especially with the reciprocal tariffs that Trump has announced.
The tariffs that US President Donald Trump imposed on Chinese goods present a significant opportunity for India, if it does internal reforms to capture a share of what China loses in exports.