Corporate India has welcomed the India-US trade deal after months of uncertainty, saying it will lower costs, boost exports and galvanise India’s growth ambitions in a rapidly evolving global market. While most companies are reading the fine print carefully, in general corporate leaders acknowledge that the India-US agreement firmly embeds the nation in global value chains, coming right after trade deals were signed with the EU, UK, Oman, New Zealand and others.
Crucially, the lowering of reciprocal tariffs by 7 percentage points, say India Inc captains, will improve competitiveness of Indian exports and bring much-needed relief to export units across sectors. The additional 25% tariffs on Indian goods have been waived off as the country is no longer buying Russian oil, the US said.
What did Kumar Mangalam Birla say?
Kumar Mangalam Birla, chairman of the Aditya Birla Group, said the reduction in tariffs would strengthen both strategic and economic ties between the two countries. “It also provides additional opportunity for investment and collaboration,” he said.
The Aditya Birla Group, which has invested over $15 billion in the US, is India’s largest investor in the world’s biggest economy. It has operations spanning metals, carbon black and chemicals in the US.
Birla said the agreement would help shape more resilient supply chains, unlock manufacturing opportunities and drive long-term economic competitiveness.
Mahindra Group said the deal gives businesses the confidence to invest. “The immediate reduction along with the commitment to progressively lower tariff and non-tariff barriers will boost growth momentum and improve the predictability businesses need to invest with confidence,” Anish Shah, group chief executive and managing director of the Mahindra Group, said.
Mahindra has been present in the US for over 25 years, employing over 8,600 people across manufacturing plants, IT development centres and a wide dealership network.
TVS Motor Company Chairman Sudarshan Venu said the reduction in US tariffs would help Indian industry to scale, innovate and create jobs. “We look forward to a stronger India-US partnership that accelerates growth, expands market access, and supports India’s ambition to be a globally competitive manufacturing and innovation hub,” he said.
Sanjiv Puri on India-US trade deal
ITC Chairman and MD Sanjiv Puri, meanwhile, framed the agreement in the context of a broader structural reset happening in the world. “The historic India-US deal spearheaded by the Hon’ble Prime Minister’s vision and laudable global statesmanship signals a new era of co-operation in trade and development between the world’s largest democracies,” he said.
Puri said the trade deal with the US follows a series of agreements with the EU, UK, New Zealand, Oman and others, collectively marking what he called “a golden era for India enabling a deeper integration with global value chains.”
SpiceJet chairman and managing director Ajay Singh said the agreement was a confidence enhancer at a time when geopolitics was fraught with challenges.
“The finalisation of the India-US trade deal is a watershed moment for our nation and a major boost for the ‘Made in India’ brand,” Singh said.
Bharti Enterprises founder and chairman Sunil Bharti Mittal said the agreement was a much awaited and a significant milestone for both countries, unlocking opportunities for investment and growth.” He said the “flurry of FTAs” was an affirmation of India’s role at the centre of global frameworks that aimed at building resilient international trade channels.
Bharat Forge CMD Baba Kalyani said the India-US trade deal represented a long-term relationship between two of the world’s largest democracies. Calling it a “game changer” for Indian industry, Kalyani said the agreement would strengthen India’s position in global supply chains and gives companies confidence to expand across sectors.
“The growth outlook is clearly positive, and we see this as a strong foundation for the next phase of our global expansion,” he said.