Foreign affairs expert K.P. Fabian said the agreement was expected, noting that direct engagement between Prime Minister Narendra Modi and US President Donald Trump was crucial to breaking the deadlock. He said the development was positive in certain aspects, especially as it came at a time when the rupee was under pressure.
“In geopolitics, if a country does not maintain strong relations with the United States while engaging with other global players, its position can become weaker. Therefore, strengthening ties with the US is important,” Fabian said. However, he added that some provisions of the deal may not be entirely favourable, pointing out that the US aims to push for zero tariffs on its exports to India while continuing to emphasise the size and influence of its domestic market.
Major General (Retd.) Dhruv C. Katoch also termed the agreement beneficial for India, highlighting US President Trump’s tendency to publicly announce policy decisions first and assess reactions later. He said India’s expanding trade partnerships with the European Union and the United Kingdom had strengthened its negotiating leverage.
Katoch also noted that India’s energy procurement policy would remain guided by economic considerations. He said India had earlier purchased oil from Venezuela before sanctions were imposed, and with restrictions now easing, India could consider sourcing oil from there if prices are favourable. “India will buy oil from wherever it is available at the best price,” he said.
Former diplomat J.K. Tripathi described the tariff reduction as a result of strategic pressure created by India through multiple trade engagements. He said India had strengthened trade ties with organisations such as EFTA and countries including the UK and Germany, creating competitive pressure on the US.
“India represents a market of 1.4 billion people, and there was growing concern that the US could lose economic opportunities if it delayed the agreement,” Tripathi said, adding that the deal reflects India’s confident and balanced approach to global trade negotiations.
Experts believe the agreement signals India’s increasing role in shaping global trade dynamics while safeguarding domestic economic interests.
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