FICCI leaders welcome India-US trade deal, say tariff cut lifts uncertainty and opens export opportunities

Industry leaders have struck an optimistic note after the United States and India agreed on a trade deal that brings down US tariffs on Indian goods from 50% to 18%, calling it a major confidence booster for businesses and a defining moment for India’s global trade ambitions.

Anant Goenka, President of FICCI and Vice Chairman of RPG Group, said the biggest gain from the agreement is the removal of uncertainty that had been weighing on sentiment. “We are very optimistic about this. It’s an uncertainty that has gone away,” he said, adding that the benefits are “psychological” as clarity helps businesses plan ahead. Goenka also pointed to a strengthening rupee and relief for employment-linked sectors such as textiles and apparel.

Vijay Sankar, Senior Vice President of FICCI and Chairman of The Sanmar Group, described the deal as the lifting of the last major overhang on the Indian economy in recent months. With the US being the world’s largest consumer market and India’s biggest destination for merchandise goods and services, Sankar said the opportunity ahead is significant. “Now that this is lifted, I think the sky is the limit,” he said, urging Indian industry to work with the government to ensure higher growth projections materialise.

Puneet Dalmia, Vice President of FICCI and MD & CEO of Dalmia Bharat Group, called the agreement a “defining moment” for India, especially as it comes soon after a major trade deal with the European Union. He said the back-to-back agreements reflect India’s growing role in global trade and geopolitics. “We are diversifying our markets… and we have a seat at the global high table,” Dalmia noted, stressing that deals with large democracies will create sustainable long-term relationships and fresh opportunities for exporters and consumers.

Subhrakant Panda, Former President of FICCI and MD of Indian Metals & Ferro Alloys, underlined that trade agreements inevitably involve concessions. “Free trade agreements and deals such as these are give and take,” he said, adding that the fine print, including any zero-tariff categories, will be key.

However, Panda highlighted the broader strategic advantage India gains through the reduced tariff level. He noted that the US is India’s largest trading partner, with merchandise trade of over $130 billion and total trade including services exceeding $210 billion. Beyond the relief from the earlier “punitive” 50% tariff, Panda said India now has an edge over competing economies facing higher rates.

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Deal announced amid market rally

After months of tensions and tough talk, the United States and India have agreed on a trade deal — the US has agreed to cut tariffs on Indian goods from 50% to 18%.

In a post on Truth Social, US President Donald Trump claimed that India will stop buying Russian oil and buy US goods worth $500 billion, which is pretty much the size of the annual budget of the Indian government. Prime Minister Narendra Modi said the deal will benefit both nations, but he stopped short of confirming President Trump's claims on Russian oil and the commitment to buy US goods.

The US tariffs on India are now at the lowest level compared to other emerging economies, with Indonesia facing a tariff rate of 19% and China as high as 34%. The announcement comes just a week after India and the EU finalised a deal, which became India’s ninth trade agreement in the last four years.

While neither side has confirmed details of the trade deal yet, speaking to Network18 exclusively, US Ambassador to India Sergio Gor also said that part of the agreement is the promise to stop buying Russian oil.

Stock markets skyrocketed at the opening bell, and the bulls managed to hold the gains through the day. The Sensex gained over 2,000 points and the Nifty gained over 600 points. All sectoral indices ended with gains. More than ₹12 lakh crore was added to the market capitalisation of listed companies today.

The Indian rupee also rallied against the dollar. The rupee was closer to the 92-mark yesterday, and today it is closer to the 90-mark. The rally in the rupee today was the biggest in the last seven years.

Industry outlook remains positive

While questions remain around the operational details and the durability of commitments, FICCI leaders said the agreement marks an important step forward.

Panda noted that President Trump has repeatedly referred to his rapport with Prime Minister Modi, which has helped reach this stage. “The fact that we have got to this stage is a very significant development, and I’m extremely positive about it,” he said, adding that India’s role in the China-plus-one strategy strengthens its position.

For Indian industry, the consensus is clear: the tariff cut removes a major hurdle, improves competitiveness, and could provide a fresh runway for export-led growth in the months ahead.

Watch accompanying video for entire discussion.