02/03/2026
New Delhi, Feb. 3: The trade industry heaved a sigh of relief on Tuesday as India broke the tariff deadlock with the US, bagging a tariff slab of 18%. This was a major rollback of the tariffs by US President Donald Trump, who had hiked the tariffs to 25% and an additional 25% “penalty” tax on certain exports from India for buying oil from Russia.
Reacting to the development, TVS Motor Company chairman Sudarshan Venu said his firm backed the India-US trade deal. “The reduction in the US reciprocal tariff on Indian goods to 18% is a positive step that improves export competitiveness and reinforces confidence in long-term bilateral economic ties, furthering PM Modi’s vision of Viksit Bharat 2047. Equally important is the intent on both sides to progressively lower tariffs and non-tariff barriers, which can deepen supply-chain integration, enable faster technology collaboration, and attract investment into advanced manufacturing.”
George Alexander Muthoot, managing director of Muthoot Finance, said, “For the financial services sector, such policy clarity supports prudent capital deployment and creates a stable environment for sustained growth. We welcome these developments as they create a strong foundation for long-term economic momentum.”
Anil Talreja, partner at Deloitte India, said: “Two deals in two weeks with nations with $50 trillion economy. The common factor here is ‘India’. As we reflected on the current economic order, India has seized every opportunity to make its place in the Global trade.”
“Opening its consumer markets for the European and US companies will turbocharge India’s growth story. Along with the announcements on the manufacturing sector in the Budget, these have the potential to increase productivity, per capita income, and raise the standard of living.”
Another partner at Deloitte India Gulzar Didwania said: “While the reciprocal tariff rate has been proposed to be lowered, certain US tariffs — particularly those imposed under Section 232 (national security) on products, such as steel, aluminium, copper, automobiles and auto components and other goods — are expected to remain in effect. As a result, an estimated portion of India’s exports to the US will continue to face higher tariffs despite the trade deal.” He also pointed out that so far, no formal legal or procedural documentation outlining the exact scope, timelines, or enforcement mechanisms for the agreement has been published.
Prabhat Kumar, chairman (IRS) of Pan IIT Alumni India, said the India-US tariff agreement is a strategic leap for technology and talent. “This development is particularly significant for the high-technology sector. By improving market access and enhancing competitiveness for Indian engineering goods, it strengthens the Make in India initiative.” “The reduction of the Tax Collected at Source (TCS) on foreign education remittances in the budget eases the financial path for Indian talent seeking global expertise. Together, these measures — facilitating trade, attracting technology, and nurturing human capital—create a virtuous cycle that will immensely benefit the IIT community and the nation,” he added.-Agencies
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