US Business Groups Welcome US–India Trade Deal, See Momentum Toward Comprehensive Agreement

Washington, Feb 2026 :The US Chamber of Commerce has welcomed the announcement of a bilateral trade deal between the United States and India, describing it as a long-awaited and significant step forward for businesses, workers, and economic cooperation in both countries. The move has been widely seen as an important signal of renewed momentum in one of the world’s most consequential economic partnerships.

US Chamber of Commerce President and CEO Suzanne P. Clark said the announcement reflected positive progress after years of sustained engagement by industry leaders and policymakers on both sides. “We congratulate the US and Indian governments on their announcement to reduce tariffs and non-tariff barriers that will benefit American and Indian companies and workers in both great nations,” Clark said in a statement.

She credited the political leadership that helped move the process forward, praising US President Donald Trump and Indian Prime Minister Narendra Modi, as well as senior officials involved in the discussions. Clark specifically acknowledged the roles played by ambassadors Vinay Kwatra and Sergio Gor, noting that sustained diplomatic engagement had been critical in achieving this breakthrough.

Expressing optimism about the road ahead, Clark said the Chamber viewed the announcement as an opening move rather than a final outcome. “We are optimistic that this is the first step toward a comprehensive trade agreement that will unlock even more private sector collaboration,” she said, adding that the Chamber looks forward to closely reviewing the details of the agreement as they emerge.

Clark emphasised that the US Chamber of Commerce, along with its US–India Business Council, has been a strong advocate for deeper economic ties between the two countries. “The Chamber, our US-India Business Council, and our members are strong champions of this effort,” she said. “We look forward to partnering with both governments to help implement today’s announcement and build on its momentum.”

The Chamber’s support is rooted in sustained engagement with India’s political and business leadership. Clark travelled to New Delhi and Mumbai last year, where she met senior Indian officials and corporate leaders and reiterated the Chamber’s call for a bilateral trade deal. She has repeatedly described the US–India economic relationship as one of the most important globally, arguing that a stronger partnership would not only boost growth in both economies but also contribute to broader global security and supply chain resilience.

Reactions to the announcement, however, have not been uniformly enthusiastic. Economist Steve Hanke offered a more measured assessment on social media, highlighting both the opportunities and lingering concerns. “In exchange for having its tariffs lowered, India commits to buying $500 billion worth of US energy, technology, agriculture, and more,” Hanke wrote, pointing to the scale of India’s reported commitments under the deal.

At the same time, Hanke cautioned that tariff levels remain an issue. “US tariffs on India are still way too high,” he said in a separate post, noting that while the United States plans to cut tariffs on Indian goods from 25 per cent to 18 per cent, significant barriers would still remain. He also referred to India’s reported commitment to stop purchasing Russian oil as part of the broader understanding.

Support for the agreement also came from the US–India Strategic Partnership Forum (USISPF), which issued a statement enthusiastically welcoming President Trump’s announcement following his conversation with Prime Minister Modi. The forum said the development reaffirmed a shared commitment to deepen the US–India economic partnership and advance a formal bilateral trade agreement.

USISPF described the reduction in India’s reciprocal tariff from 25 per cent to 18 per cent as “an important and positive first step,” while noting that the finer details of the agreement are still being finalised. “While the agreement’s specifics are pending, today’s announcement signals strong political will on both sides to move toward a comprehensive US–India Bilateral Trade Agreement,” the forum said.

According to USISPF, such an agreement would address a wide range of issues, including tariffs, market access, non-tariff barriers, and sector-specific challenges. The forum said a comprehensive deal would deliver tangible benefits for businesses, workers, and consumers in both countries, while strengthening supply chains and improving overall economic resilience.

The forum also stressed that both governments have made it clear that the announcement marks the beginning of a longer negotiating process rather than its conclusion. “This is only the beginning, with additional phases and negotiations anticipated in the months ahead,” USISPF said, adding that it was encouraged by the constructive momentum generated by the latest development.

Reiterating its commitment to ongoing engagement, USISPF said it would continue working closely with both the Government of India and the US Government to advance the shared goal of expanding bilateral trade toward the $500 billion target. “A stronger US–India trade and investment relationship is not only critical to both economies but also central to advancing a stable, resilient, and rules-based Indo-Pacific,” the statement concluded.