Delhi: The trade deal between India and the US is being considered a historic turning point for the Indian economy on Monday, February 2, 2026. This mega deal was announced after a telephonic conversation between President Donald Trump and Prime Minister Narendra Modi. This deal is entirely based on trade, in which both countries are offering significant concessions. Let’s know the terms of this deal and which Indian sectors will benefit the most from it.
Big clause of the deal
Ban on Russian oil: The big clause of this deal is that India will no longer buy crude oil from Russia. Instead, India will meet its energy needs from the US and Venezuela. Zero tariff target: India has committed to reducing all tariffs and non-tariff barriers on US products to 0%. $500 billion purchases: Under the Buy American policy, India will buy $500 billion worth of energy, technology, coal and agricultural products from the US over the next few years.
Major benefits on these areas
The US tariff cut will boost India’s exports. These five sectors will benefit the most.
Textiles and Apparel: The US tariff cut will make Indian garments cheaper in the US, leading to an increase in exports and orders.
IT Services and Technology: India has asked to buy high-tech goods from the US, which will provide big projects and opportunities for co-development for Indian IT companies.
Major benefits on these areas
Pharma: Reducing the tax burden on drug exports will further strengthen the presence of Indian generic drugs in the US market.
Auto Mobiles Parts: The US is a key market for Indian auto parts manufacturers. The 7% tariff cut will boost their profits.
Jewelry and Leather: The tariff reduction on handmade jewelry and leather products will provide significant relief to these labor-intensive industries.