US business chambers, think tanks welcome India-US deal

New York, Feb 3 (PTI) The India-US trade deal is a "first step” toward a comprehensive bilateral agreement that will unlock more private sector collaboration and help clear a pathway to work on other pressing matters, leading business chambers and think tanks said.

US Chamber of Commerce President and CEO Suzanne Clark welcomed progress toward a trade deal between the United States and India — a development it said that it and American and Indian businesses have long sought.

"We congratulate the US and Indian governments on their announcement to reduce tariffs and non-tariff barriers that will benefit American and Indian companies and workers in both great nations,” Clark said in a statement Monday.

The Chamber voiced appreciation for the efforts of President Donald Trump and Prime Minister Narendra Modi, and their officials, including Ambassadors Vinay Kwatra and Sergio Gor.

“We are optimistic that this is the first step toward a comprehensive trade agreement that will unlock even more private sector collaboration, and we look forward to reviewing the details of the deal,” Clark said.

The Chamber, its US-India Business Council, and members are strong champions of this effort, and “we look forward to partnering with both governments to implement today’s announcement.” Last year, Clark travelled to New Delhi and Mumbai for meetings with Indian officials and business leaders, and called for a trade deal with India.

She noted that US-India economic relationship is one of the most consequential in the world, and a trade deal would benefit both economies as well as global security, the statement said.

Asia Society Policy Institute (ASPI) Senior Vice President and Former Acting Deputy US Trade Representative Wendy Cutler said the trade deal announcement is “certainly a relief to our Indian partners”, who have faced some of the highest tariff rates of any partner.

“It will help clear the pathway for the US and India to work cooperatively on other pressing matters concerning critical minerals, technology cooperation, and supply chain resiliency,” Cutler said.

She said that importantly, the US' reciprocal tariff for India will be reduced to 18 per cent, giving Indian exporters a slight edge in the US market over its ASEAN competitors who have secured 19 per cent-20 per cent tariffs.

Cutler, however, added that the announcement of the US-India trade deal follows the pattern seen before, a Truth Social announcement by Trump conveying successful completion but light on details.

With this announcement, the US has achieved another deal with an important trading partner, now shifting the spotlight to Indonesia and Vietnam.

“But many of these so-called deals are still in the need of further work as they are still in the Framework stage, with lack of details and timelines for implementation,” Cutler said.

“Moreover, India agreed to purchase USD 500 billion of US products, with no timeline nor private sector announcements made thus far to accompany this large number. When it gets to Indian tariff (and NTM) cuts, Trump’s language gets vaguer, only conveying that India ‘will move' to zero percent," she said.

"However, based on the language of the Truth Social post, it does seem likely that the US secured deeper and broader tariff cuts than the EU achieved in its recently announced FTA with Delhi,” she said.

She further noted that while Modi welcomed the reduction in US tariff rates, he was was "silent on the rest.” Indian-American attorney Ravi Batra said the deal will help bring peace to Ukraine sooner.

“Bravo dear @POTUS & @narendramodi! Finally, we have a Trade Deal with India at a comparatively preferential tariff rate of 18% for South Asia! This will help bring peace to Ukraine sooner. It’s now time to walk the promise of US-India Indivisibility...!” Batra said. PTI YAS AMS