India's Ambassador to the United States, Vinay Mohan Kwatra, has warmly welcomed a landmark trade agreement between New Delhi and Washington, describing it as a significant milestone in bilateral relations.

Speaking from Washington DC on 3 February 2026, Kwatra praised the deal as a "big WIN for a consequential partnership" forged under the leadership of Prime Minister Narendra Modi and US President Donald Trump.

In a statement posted on X, the envoy highlighted how the agreement unlocks "vast new opportunities" for the economies and peoples of both nations, marking the onset of an "exciting new phase" in their strategic ties.

This trade pact notably grants India more favourable tariff rates compared to Pakistan, which faces a 19 per cent reciprocal tariff under an Executive Order issued by President Trump on 31 July 2025.

The development coincides with External Affairs Minister S Jaishankar's ongoing three-day visit to the United States, underscoring the momentum in India-US engagements.

Jaishankar is scheduled to hold high-level talks with US Secretary of State Marco Rubio at the Department of State on Tuesday at 3:30 pm local time, ahead of key multilateral discussions. The minister's itinerary includes participation in the inaugural Critical Minerals Ministerial on 4 February, hosted by Washington to bolster global cooperation on supply chains vital for economic security and technological advancement.

Announcing the event, the US Department of State emphasised Secretary Rubio's role in uniting international partners to ensure resilient critical mineral supplies, essential for national security, energy transitions, and innovation.

Jaishankar himself endorsed the trade deal via a post on X, noting that it will "create more jobs, spur growth and promote innovation in both economies."

He further stressed its alignment with India's "Make in India" initiative, while fostering "trusted technology ties" between the two countries. This agreement arrives against a backdrop of intensifying India-US strategic convergence, particularly in countering regional challenges and advancing shared economic interests.

Kwatra's enthusiastic endorsement reflects New Delhi's optimism about deepened economic integration, potentially reshaping trade dynamics in the Indo-Pacific region.

The tariff disparity with Pakistan signals Washington's nuanced approach to South Asian trade, favouring allies like India amid ongoing geopolitical recalibrations.

Jaishankar's visit thus serves as a pivotal platform to translate this trade momentum into broader cooperation on critical minerals, a sector crucial for defence technologies, electric vehicles, and renewable energy.

Such minerals—encompassing lithium, cobalt, and rare earths—are indispensable for India's aerospace and defence ambitions, including indigenous manufacturing under Atmanirbhar Bharat.

The focus on supply chain resilience aligns closely with India's interests in securing raw materials for its growing missile systems, UAVs, and space programs led by ISRO. For the US, the partnership counters over-reliance on adversarial suppliers, bolstering mutual technological leadership amid global tensions.

Prime Minister Modi's rapport with President Trump, evident in recent talks, has evidently paved the way for this deal, building on prior defence and trade pacts.

Analysts view this as a counterweight to China's dominance in critical minerals, enhancing India-US interoperability in strategic domains. Jaishankar's meetings could yield further commitments on joint ventures, technology transfers, and investment flows, amplifying the trade agreement's impact.

India's defence sector, with its emphasis on self-reliance, stands to gain immensely from reliable mineral access, supporting projects like Gaganyaan and hypersonic missile development. The envoy's remarks and ministerial agenda collectively herald a fortified economic pillar in the Comprehensive Global Strategic Partnership.

As negotiations progress, this phase promises sustained growth, job creation, and innovation, cementing India-US ties for the years ahead.

Based On ANI Report