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Corporate Update

BIG BREAKTHROUGH FOR INDIA–US TRADE

• By  Textile Excellence
• February 04, 2026

US President Donald Trump announced a trade deal between India and the United States on Monday, adding that the US reciprocal tariffs on India would be slashed to 18% with immediate effect.

"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 per cent to 18 per cent," Trump posted on his social media platform Truth Social.

PM Narendra Modi welcomed the trade deal calling it a `wonderful announcement’. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” PM Modi posted on X.

Reports suggest that the 18% reciprocal tariff rate now effectively also removes the 25% tariff on India for Russia crude oil procurement. An official confirmation on the same is awaited.

Details of the India-US trade deal are yet to be revealed, though Trump’s post makes a series of claims: from India’s promise to stop buying Russian crude, reducing tariffs on US goods t zero, agreeing to step up US oil imports to buying US$ 500 billion of US products across sectors.

Welcoming the news, Confederation of Indian Textile Industry (CITI) Chairman Shri Ashwin Chandran said: “We heartily welcome the announcement of the trade deal between the US and India and the reduction in the US tariff on Indian goods to 18%. CITI would like to express its sincere gratitude to both the US President, Mr Donald Trump and Indian Prime Minister, Shri Narendra Modi, for this trade deal. This reduction in tariff will ensure our textile and apparel exporters are once again in a position to compete effectively in the US market. This deal will also ensure that factories can run at full steam once more and job creation can get back to previous levels.”

Welcoming the news, Confederation of Indian Textile Industry (CITI) Chairman Shri Ashwin Chandran said: “We heartily welcome the announcement of the trade deal between the US and India and the reduction in the US tariff on Indian goods to 18%. CITI would like to express its sincere gratitude to both the US President, Mr Donald Trump and Indian Prime Minister, Shri Narendra Modi, for this trade deal. This reduction in tariff will ensure our textile and apparel exporters are once again in a position to compete effectively in the US market. This deal will also ensure that factories can run at full steam once more and job creation can get back to previous levels.”