Story perspectives

India-U.S. Trade Deal Cuts Tariffs Amid Controversy

2/4/2026

Center

India-U.S. Trade Deal

India and the United States secured a trade agreement reducing tariffs on exports from 25% to 18%.
The deal follows a major free trade agreement with the European Union to boost India's global economic ties.
Critics, including the Congress Party, say the Modi government compromised Indian interests, especially in agriculture.
They demand transparency and parliamentary debate on the trade deals as the agreement may boost manufacturing and IT.

Left

India Strengthens Trade

Canada’s Prime Minister Mark Carney called for middle powers to unite at the World Economic Forum in Davos, indirectly referencing India.
India’s Prime Minister Narendra Modi announced a significant trade agreement with the European Union, concluding nearly 20 years of negotiations.
The deal aims to double trade within six years and highlights India's emerging role as a middle power.
Recent agreements with Britain, Oman, and New Zealand show India's shift towards deeper economic ties.

History

Historical Context

India and the European Union began negotiating a free trade agreement in 2007, but talks stalled in 2013 due to various disputes. Renewed negotiations resumed in July 2022, culminating in a finalized agreement in January 2026. This deal aims to eliminate tariffs on 97% of goods, reflecting India's strategic shift towards enhancing global economic ties and its growing influence as a middle power.

1 of 3

India-U.S. Trade Deal

India and the United States secured a trade agreement reducing tariffs on exports from 25% to 18%.
The deal follows a major free trade agreement with the European Union to boost India's global economic ties.
Critics, including the Congress Party, say the Modi government compromised Indian interests, especially in agriculture.
They demand transparency and parliamentary debate on the trade deals as the agreement may boost manufacturing and IT.

1 / 3