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Opinion | India-US Trade Deal: A Force Multiplier

15 1
10.02.2026

“Opportunities multiply as they are seized." — Sun Tzu

“If a window of opportunity appears, don’t pull down the shade." — Tom Peters

The India-US trade deal was an opportunity that was seized by both sides and rightfully so. Prime Minister Narendra Modi’s government has navigated complex negotiations with strategic brilliance, securing a deal that boosts India’s economy while safeguarding its core interests. This deal, an interim agreement at this stage, paves the path for a comprehensive bilateral trade agreement (BTA), going forward.

It isn’t just a trade pact but a testament to Modi’s visionary leadership in positioning India as a global powerhouse. On February 6, 2026, the two nations unveiled a framework for an “Interim Agreement" on reciprocal and mutually beneficial trade, marking a pivotal moment in their bilateral ties. This deal, forged under the leadership of two highly dynamic leaders, Prime Minister Narendra Modi and US President Donald Trump, comes at a time when the world is grappling with tariff wars, supply chain disruptions and geopolitical shifts. For India, it is a resounding victory and one that reduces US tariffs on Indian goods to a competitive 18%, opens vast markets for Indian exports and ensures strategic autonomy without any compromises whatsoever, on sensitive sectors like agriculture and dairy.

The Modi government’s approach to this deal exemplifies its “Atmanirbhar Bharat" (Self-Reliant India) ethos. By negotiating from a position of strength, bolstered by India’s robust economic growth, diversified trade partnerships and unwavering commitment to national interests, the Modi government has turned any potential adversity into opportunity. This pact provides Indian farmers with “much bigger value" and boosts their incomes, while positioning India favourably against regional hegemons like China. In an era where the USA has imposed higher tariffs on nations like China (over 35 per cent), India’s 18 per cent highlights Modi’s diplomatic acumen. The weighted tariff rate for India on a plethora of goods is even lower at 14.6 per cent.

Bilateral trade in goods and services between the world’s two largest democracies has grown exponentially, from a modest $36 billion under the erstwhile Congress led UPA, to over $200 billion by 2025. This surge was fuelled by complementary strengths—India’s prowess in IT services, pharmaceuticals and textiles and the USA’s demand for affordable, high-quality goods. Under previous Indian administrations, trade talks........

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