India-US trade deal a historic step, will open new avenues for businesses: Gujarat CM Patel

Ahmedabad, Feb 3 (PTI) Gujarat Chief Minister Bhupendra Patel on Tuesday hailed the India-US trade deal as a "historic step forward" in relations between the two countries, saying it will create fresh opportunities for Indian MSMEs, farmers, youth and businesses on both sides.

India and the US agreed on a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent, lower than that for countries like China, Bangladesh and Vietnam.

US President Donald Trump made an announcement regarding the trade deal on Monday after a phone conversation with Prime Minister Narendra Modi.

In August 2025, the US announced to impose a 25 per cent tariff plus another 25 per cent punitive duty for buying Russia's crude oil and military equipment. These duties were imposed over and above the existing tariffs that the Indian goods were facing in the US.

In a post on X, Chief Minister Patel said the "landmark trade agreement" between the two nations was achieved under the visionary leadership of PM Modi.

The trade agreement and reduced tariffs on products made in the country will strengthen 'Make In India' (initiative of the government), expanding market access and creating fresh opportunities for Indian MSMEs, farmers, youth, and businesses on both sides, he said.

"When the world's largest democracies work together, it accelerates growth, innovation, and shared prosperity. Congratulations to Hon'ble PM on this major milestone for India's economic journey," he added. PTI KA PD GK