Business Leaders Cheer India–US Tariff Cuts, Expect Investment Surge

Top Indian industrialists have hailed the newly announced India–US trade deal as a landmark step that could deepen economic engagement and open new avenues for investment, manufacturing, and long-term collaboration between the two nations.

Reacting to the announcement, Aditya Birla Group Chairman Kumar Mangalam Birla said the reduction in tariffs would significantly strengthen strategic and economic ties between India and the United States. Applauding Prime Minister Narendra Modi and US President Donald Trump, Birla said the agreement would create additional opportunities for investment and collaboration.

Highlighting that the Aditya Birla Group is the largest Indian investor in the US, Birla noted that the deal would help build more resilient supply chains, unlock manufacturing opportunities, and enhance long-term economic competitiveness. He added that the group remains committed to expanding its footprint in the US, driven by opportunities for innovation, growth, and enduring partnerships.

Mahindra Group Chairman Anand Mahindra also welcomed the development, describing it as a reflection of the benefits of a patient and pragmatic approach to trade negotiations. He remarked that once short-term noise settles, India and the US—natural partners—will inevitably move closer.

The trade deal was finalised on February 2 following talks between the leadership of both countries. As part of the agreement, the US reduced its reciprocal tariff on Indian goods to 18 per cent from 25 per cent. Washington also removed the additional 25 per cent punitive levy that had been imposed over India’s purchase of Russian oil, a move expected to ease trade pressures and improve the business environment.

TVS Motor Company Chairman Sudarshan Venu said the agreement reflects a shared intent to progressively lower tariffs and non-tariff barriers. He said this would deepen supply-chain integration, enable faster technology collaboration, and attract investments into advanced manufacturing.

Venu added that India’s recent trade agreements with key global partners bring much-needed predictability and openness at a time of global uncertainty, helping Indian industry scale, innovate, and create jobs.

Overall, industry leaders believe the India–US trade deal will boost investor confidence, enhance manufacturing cooperation, and further cement economic ties between the world’s largest democracies.

(With inputs from ANI)