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COVER STORY FEBRUARY 13, 2026 | The Indian Eye 4

INDIA–US DEAL

A RESET

IN TIES

As India steps into what Prime Minister Narendra Modi has called the decisive “second quarter of the 21st
century,” the new India–US trade deal is emerging as a key economic and strategic lever shaping growth,
global standing, and bilateral cooperation.

OUR BUREAU investment flows. By dismantling
what Jaishankar described as a “50
New Delhi/Washington
per cent tariff wall,” both economies
he recently announced India– are expected to see a surge in export
United States trade deal marks volumes and renewed confidence
Tmore than the easing of tariff among businesses.
tensions between the world’s two Viksit Bharat and “Future-
largest democracies. It represents Ready” Trade
a calibrated strategic move that fits
squarely into Prime Minister Naren- or the Modi government, how-
dra Modi’s long-term vision of Viksit ever, the significance of the deal
Bharat by 2047, strengthens India’s Fgoes far beyond numbers. In
global image as a trusted economic his parliamentary address, the Prime
partner, and adds fresh momentum Minister repeatedly emphasised that
to an increasingly multi-dimensional India is now signing “future-ready”
India–US relationship. trade agreements aligned with do-
Speaking in Parliament this mestic reform and global integration.
week while replying to the Motion of “In the past few days, we have
Thanks on the President’s Address, had trade deals with nine big and im-
Prime Minister Modi framed the cur- portant countries,” Modi said, calling
rent moment in almost civilisational the agreement with the 27-member
terms. “The first quarter of the 21st European Union the “mother of all
century has completed. But this sec- deals” while placing the US pact in
ond quarter is decisive, just like the For Prime Minister Narendra Modi, the deal with the US is an important step in his vision for the same strategic category. “The
second quarter of India’s freedom entire world is openly praising these
struggle was,” he said, underscoring development in India (File) trade deals. With stability, the world
that India would no longer “miss can now sense speed in India,” he
the bus” but instead “lead from the ecutive Director of ORF America, ington and New Delhi say a joint added.
front.” the agreement “concludes a period statement outlining sequencing and This emphasis on speed and
The India–US trade agreement, of high trade tensions and sets a new technical details is expected shortly, stability reflects a broader shift in
announced amid this broader nar- path for bilateral commerce.” providing a roadmap for implemen- India’s economic diplomacy. Rather
rative of reform and global engage- Central to the breakthrough is tation. The tariff rollback is expect- than defensive trade postures, New
ment, is being seen in New Delhi as the decision by US President Don- ed to benefit key sectors including Delhi is positioning itself as a proac-
a concrete manifestation of that am- ald Trump to slash tariffs on Indian agriculture, technology, pharmaceu- tive shaper of global supply chains—
bition. goods to 18 per cent, down from ticals, and manufacturing—areas an approach that dovetails with the
Ending a Phase of Trade the punitive 50 per cent imposed in that already anchor India–US trade, Viksit Bharat goal of making India a
Friction September last year. “It has brought which crossed USD 190 billion in re- developed nation by 2047.
a sense of relief to those who were cent years. Addressing India’s youth, Modi
t the most immediate level, the concerned about the very high tar- Market analysts and industry argued that these agreements open
deal brings relief after months iffs…which now appear to go away,” leaders have reacted positively, de- global markets to Indian talent. “The
Aof elevated trade tensions. Jaishankar told ANI. scribing the agreement as a stabilis- world market is now open to our
According to Dhruva Jaishankar, Ex- Government sources in Wash- ing force that could unlock long-term Continued on next page... >>

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