India-US trade deal welcomed, but concerns linger ahead
India and the United States have long pushed for a trade pact, but progress has been slow and often uncertain.
Washington was buzzing after President Donald Trump and Prime Minister Narendra Modi announced the long-awaited India–US trade agreement. The deal quickly drew praise from Indian-American business leaders, while former officials welcomed the move but warned that many questions still remain unanswered.
For some close to the Trump administration, the agreement did not come as a surprise. Venture capitalist and Republican fundraiser Asha Jadeja Motwani said the deal had been expected for months in Washington circles.
“The trade deal was expected,” she said in an interview with IANS.
Jadeja Motwani described the agreement as a major win for both countries. She said she believed Prime Minister Modi was willing to make tough choices, especially on energy. According to her, Modi was open to shifting India’s oil purchases away from Russia and toward the United States or US allies.
she said. She called the tariff outcome “as good as it gets” under current conditions.
She also said Washington now sees India as a key partner, not just for trade, but for energy, defense, and technology. In her view, the relationship has fully recovered from recent strains.
“It is completely back on track,” she said. “It is rock solid.” She urged businesses in both countries to move fast and turn political goodwill into real partnerships.
Not everyone was as upbeat. Raymond Vickery, a former US Assistant Secretary of Commerce for Trade Development, took a more careful view. He said the biggest value of the agreement may be that it stops further damage to US-India ties.
“The major import of the deal is to stop the downward spiral in US-India relations,” Vickery told IANS. He said tensions had grown in recent years due to tariffs, visa rules, and other disputes.
Vickery welcomed the reported tariff cut from 25 percent to 18 percent. Still, he said it was hard to judge the deal without clear details.
He questioned claims that India had removed tariff and non-tariff barriers in sensitive areas like agriculture and dairy.
He also raised doubts about the numbers being discussed. Trump administration officials have spoken of as much as $500 billion in additional purchases. Vickery called that figure hard to believe.
“That is an extraordinary number,” he said, noting that total annual trade between the two countries is currently around $200 billion.
Rick Rossow of the Center for Strategic and International Studies said the agreement comes after a surprising year for trade. Despite heavy tariffs during much of 2025, trade between India and the US held up better than many expected.
He said bilateral trade grew by about 16 percent over the past year. He added that exclusions for products like pharmaceuticals helped soften the blow.
Rossow said there was some slowdown toward the end of the year. He warned that the US risked losing ground as India signed trade deals with other countries.
He described the current announcement as a possible first step. In his view, it improves market access in India and brings US tariffs on Indian goods closer to normal levels.
Republican leader Niraj Antani from Ohio welcomed the deal without hesitation. He called it a big moment for both democracies.
He praised the reciprocal tariff cuts and India’s decision to stop buying Russian oil.
Antani said the tariff drop from 25 percent to 18 percent was especially important for India. He called the agreement fair and beneficial for both sides.
He added that the deal breaks a long deadlock that earlier governments could not solve.
Indian-American entrepreneur Yogi Chug said the agreement meant a lot to the diaspora business community. For many, he said, it felt like a real turning point.
He said the deal builds trust at a time when global competition is growing sharper.
India and the United States have tried for years to build a broad trade framework. Talks often stalled over tariffs, market access, and political issues. Even so, trade between the two countries kept growing and has now reached about $200 billion.
The new agreement comes as both governments try to link trade with bigger goals. These include energy security, critical minerals, defense cooperation, and advanced technology. Many details are still missing, and businesses are waiting for the full text.
For now, the mood is hopeful but careful. Supporters see progress after years of talks. Critics want proof in writing. What comes next will decide whether this deal becomes a true turning point or just a pause in a long and complicated trade story.