India-US trade deal a 'game changer', reckons USIBC

The India-US trade deal announced by US President Donald Trump is a “very significant” development and could reshape economic ties between the two countries, Atul Keshap, President of the US-India Business Council (USIBC), said on Tuesday.

Keshap told IANS in an interview that the agreement includes “a very substantial reduction of tariffs charged by the United States toward Indian goods that are coming to our country.” He said India would also move to “reciprocally” lower its tariffs, based on information made public so far.

He said the deal sends a positive signal at several levels. “Psychologically, it’s very good and very positive for momentum between the two countries,” Keshap said. He added that it is also “really good for businesses and investors on both sides.”

According to Keshap, sentiment among the US business community after the announcement of the trade deal has been “very positive.”

Negotiations on the deal lasted almost a year and began after Prime Minister Narendra Modi visited the White House in February 2025. In a joint statement, the two countries committed to a trade deal. “It’s been a very long negotiation,” he said, crediting both sides for their “diligence and the care that they have taken in these talks.”

Keshap said the agreement sends “a very strong signal” that the United States and India are serious about moving closer economically, strategically, and technologically. He said trade talks can slow other areas of cooperation while negotiations are underway. “So this now sends a very, very substantial and important signal to all of the other elements of the US-India relationship to start moving ahead again,” he said.

For businesses, the deal creates fresh momentum. Keshap said it would act as “almost a starting pistol for doing even more in terms of investment and engagement with both sides.”

His comments came as External Affairs Minister (EAM) S. Jaishankar arrived in Washington for meetings with senior US officials, including Secretary of State Marco Rubio. A critical minerals summit is also scheduled. Keshap said this focus was important for the future.

“Critical minerals are so important to powering the future of the world,” he said. He pointed to energy needs, the digital economy, and advanced technologies. He also referred to a “nuclear energy renaissance” and said defense co-production and co-development must now move forward.

Keshap said trade and investment had continued to grow even during the negotiations. He cited announcements by major US technology companies on investments in India. He said these reflected confidence in India’s growth, stability, and talent base. “What you may see now with trade facilitation happening is just more trade, more goods moving in both directions for the benefit of both of our peoples,” he said.

He said India bought “almost a hundred billion dollars worth of American goods last year.” Lower tariffs and greater predictability would help businesses plan better and expand trade flows, he noted.

Asked about Trump’s remarks that India has committed to buy products worth $500 billion, he said several sectors could benefit. He mentioned agriculture, defense articles, capital machinery, and aerospace. “The US is a diversified economy just like India,” he said, adding that new tariff stability could open opportunities in areas we might not have even thought of.

Keshap said he has long supported a target of $500 billion in annual bilateral trade in goods and services. He said the current trade stood “somewhere in the $200 billions.” “It would mean that the world’s greatest democracies are getting ever closer,” he said, calling that outcome good for global stability and prosperity.

Keshap congratulated Trump and Prime Minister Modi, as well as the ambassadors and trade negotiators on both sides, for advancing the deal. Quoting US Chamber President Suzanne Clark, he said, “It is now time for the business communities to do their part to help implement this vision.”

The US-India Business Council is part of the US Chamber of Commerce and represents companies engaged in bilateral trade and investment. Economic ties between India and the United States have expanded steadily in recent years alongside growing cooperation in defense, technology, and energy.

Picture Courtesy: IANS