The India-US trade deal announced on February 02, 2026 is expected to unlock an opportunity of up to $100 billion for the electronics and semiconductor sectors, while also signalling strong intent on both sides to move towards a comprehensive bilateral agreement.
According to the union minister of electronics and it, India and the US have complementary strengths, enabling them to co-create technologies and jointly develop solutions with global relevance. He said the trade deal would lead to a brighter future for both countries, describing it as a win-win arrangement that would benefit citizens as well as industries.
His comments followed an announcement by US President, who said Washington and New Delhi had agreed to a trade deal under which the US would cut the reciprocal tariff from 25 per cent to 18 per cent, after a telephonic conversation with prime minister of India. In return, India would reduce tariffs and non-tariff barriers on US goods.
Similarly, according to IESA, the agreement improves market access and enables smoother flows of capital equipment and advanced technologies. When combined with initiatives such as iCET and TRUST, the deal is expected to strengthen trusted supply chains and deepen technology collaboration, significantly enhancing India’s appeal as a global manufacturing and innovation hub. Similarly, US-based industry bodies have also welcomed the move.
Further, a bilateral trade agreement between the two countries would deliver tangible benefits for businesses, workers and consumers on both sides, while reinforcing supply chains and overall economic resilience.
