US–India Trade Deal Strengthens Strategic and Economic Ties, Amit Shah Says

New Delhi, Feb 2026 : Union Home Minister Amit Shah on Monday welcomed the recently announced trade deal between India and the United States, saying it will significantly elevate the strategic partnership between the two nations and pave the way for stronger trade ties and mutual growth.

In a post on social media platform X, Shah described the agreement as a major milestone in India–US relations, highlighting that it locks in a significantly reduced reciprocal tariff of 18 per cent on Indian goods entering the US market, down from the earlier 25 per cent. He noted that this tariff reduction will benefit businesses and consumers in both countries and create new opportunities for economic cooperation and expansion.

Shah congratulated Prime Minister Narendra Modi and US President Donald Trump for brokering what he called a “historic deal.” He emphasised that the agreement would deepen strategic cooperation and open new avenues for trade and investment, while also reinforcing long-term diplomatic ties between the two democracies.

The trade deal was announced following a phone call between Prime Minister Modi and President Trump, in which both leaders reaffirmed their commitment to furthering bilateral ties. Trump announced that the United States would immediately implement the tariff reduction, offering a more favourable trade environment for Indian exports to the US.

Prime Minister Modi also welcomed the development on social media, saying he was “delighted” that Made in India products would now attract lower tariffs of 18 per cent under the new agreement. Modi thanked President Trump on behalf of the 1.4 billion people of India and noted that when two of the world’s largest economies and democracies cooperate closely, it benefits citizens and creates tremendous opportunities for mutually beneficial collaboration.

Modi expressed his eagerness to work with Trump to elevate the bilateral partnership to new heights. He also highlighted his support for the US President’s leadership on global peace, stability and prosperity, suggesting that the deal could have positive ripple effects beyond trade alone.

In his own remarks on social media, President Trump said India would work toward reducing tariffs and non-tariff barriers on US products to zero and commit to purchasing American goods—including energy, technology, and agricultural products—totaling more than USD 500 billion in value. He characterized the agreement as a gesture of friendship and mutual respect and linked it to broader strategic discussions, including the Russia-Ukraine conflict.

Trump further claimed that Modi had agreed to move away from Russian oil purchases in favour of increasing energy imports from the United States and possibly Venezuela—a shift he suggested could contribute to efforts aimed at ending the Ukraine war. While details on energy commitments are still emerging, the tariff reduction and associated trade understandings mark a significant thaw in US–India trade relations after months of negotiation and earlier tariff tensions.

Officials say the deal gives Indian exporters a competitive advantage in the US market compared to some rival economies and is expected to strengthen both countries’ positions in global trade. Shah’s message reflected broad government optimism that the agreement will help drive sustainable growth, greater economic integration and deeper strategic alignment between India and the United States in the years ahead.