Daijiworld Media Network - New Delhi

New Delhi, Feb 3: Union Home Minister Amit Shah on Monday said the trade deal between India and the United States will elevate the strategic partnership between the two countries and pave the way for stronger trade ties and mutual growth.

In a post on X, Shah described the agreement as a major milestone in India-US relations, noting that the deal locks in a significantly reduced reciprocal tariff of 18 per cent. He said the move would greatly benefit both nations and their people, with business between India and the US set to flourish further.

Congratulating Prime Minister Narendra Modi and US President Donald Trump for the “historic deal”, Shah said it would deepen strategic cooperation and open new avenues for economic growth.

The agreement was announced after a phone conversation between Modi and Trump, during which the US president said Washington would reduce reciprocal tariffs on Indian goods from the current 25 per cent to 18 per cent.

Prime Minister Modi welcomed the development, saying he was delighted that “Made in India products will now have a reduced tariff of 18 per cent”. Thanking President Trump, Modi said that when two large economies and the world’s largest democracies work together, it benefits people on both sides and unlocks immense opportunities for mutually beneficial cooperation.

Modi also said he looked forward to working closely with Trump to take the bilateral partnership to unprecedented heights, while expressing support for the US president’s leadership on global peace, stability and prosperity.

President Trump, in his remarks on social media, said India would move forward to reduce tariffs and non-tariff barriers against the US to zero and would purchase American goods, including energy, worth over USD 500 billion. He added that Prime Minister Modi had committed to buying US energy, technology, agricultural products, coal and other goods at much higher levels.

Trump also said the two leaders discussed the Russia-Ukraine conflict, claiming that Modi agreed to stop buying Russian oil and increase purchases from the US and potentially Venezuela, a move he said could help end the war.

The latest talks come amid renewed momentum in trade negotiations, which had earlier stalled after the US imposed steep tariffs on Indian goods. Officials said the new agreement gives India a lower tariff advantage compared to competing export economies, strengthening its position in global trade.