The newly announced India–US trade agreement represents a major turning point in bilateral economic relations and has the potential to reshape ties between the two nations, according to Atul Keshap, President of the US-India Business Council (USIBC).

Speaking to IANS, Keshap described the deal as a “very significant” development that would ease trade frictions and create a more predictable environment for businesses and investors on both sides. He noted that the agreement includes a substantial reduction in US tariffs on Indian goods, while India is also expected to lower its own tariffs in a reciprocal manner.

Keshap emphasized that the deal carries strong psychological and economic benefits. “It is very positive for momentum between the two countries,” he said, adding that the business community in the United States has reacted with optimism since the announcement. He believes the agreement will encourage greater investment, collaboration, and long-term planning.

Negotiations for the trade deal stretched nearly a year, beginning after Prime Minister Narendra Modi’s visit to the White House in February 2025, when both leaders committed to pursuing a comprehensive trade arrangement. Keshap credited negotiators from both sides for their persistence and careful diplomacy throughout the process.

He also stressed that resolving trade issues would help accelerate cooperation in other strategic areas that had slowed during negotiations. According to him, the deal sends a clear message that India and the United States are serious about deepening economic, technological, and security ties.

For the corporate sector, Keshap said the agreement would act like a “starting pistol,” encouraging companies to expand operations, diversify supply chains, and explore new partnerships. He pointed to recent investments by major US technology firms in India as evidence of growing confidence in India’s market, stability, and skilled workforce.

His comments came as External Affairs Minister S. Jaishankar arrived in Washington for high-level meetings with US officials, including Secretary of State Marco Rubio. A critical minerals summit is also scheduled during the visit, which Keshap said is vital for future global energy and technology needs.

He highlighted the importance of critical minerals in clean energy, digital infrastructure, artificial intelligence, and advanced manufacturing. He also referred to a potential “nuclear energy renaissance” and called for faster progress in defence co-production and co-development between India and the US.

Keshap noted that trade between the two countries has continued to grow despite earlier tensions. He said India purchased nearly $100 billion worth of American goods last year, and lower tariffs would likely further boost two-way commerce.

Addressing President Trump’s claim that India could buy up to $500 billion worth of US goods, Keshap said multiple sectors stand to benefit, including agriculture, defence equipment, aerospace, and industrial machinery. He believes the deal could open opportunities in areas not yet fully explored.

He reiterated his long-standing view that India and the US should aim for $500 billion in annual bilateral trade in goods and services, noting that current trade stands at around $200 billion. Achieving this target, he said, would strengthen global stability and prosperity.

Keshap concluded by congratulating President Trump, Prime Minister Modi, and negotiators from both sides for advancing the agreement. Citing US Chamber of Commerce President Suzanne Clark, he said it is now up to businesses to help implement the vision of deeper economic partnership.

The USIBC, part of the US Chamber of Commerce, continues to play a key role in promoting trade, investment, and strategic cooperation between India and the United States.