Bhubaneswar, Feb 3 (PTI) Odisha Chief Minister Mohan Charan Majhi Tuesday congratulated Prime Minister Narendra Modi for securing a trade agreement with the United States, which led to a significant reduction in tariffs on Indian exports, and called it a “people focused” diplomacy.

India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.

In a post on X, Majhi said, “I extend my sincere congratulations and gratitude to PM Shri @narendramodi Ji for his decisive leadership and people-focused diplomacy, strengthening Indo-US ties and enhancing India’s global economic presence.” Majhi described the reduction of tariff on India-made products to 18 per cent as a “historic advancement in India-United States economic relations”, and said it will set a strong foundation for deeper cooperation and shared prosperity.

“The US tariff reduction to 18% on Made in India products is a significant boost for Indian manufacturing, MSMEs, exporters, and job creation, while opening broader markets and new avenues for entrepreneurs and startups,” the chief minister said.

BJP MP and party’s vice president Baijayant Panda also congratulated both Prime Minister Modi and US President Donald Trump for the "historic breakthrough".

He said, “This is a major milestone that will not just hugely boost trade & investment between the world's two largest democracies, but have an immensely positive impact on the world as a whole. This is just the latest instance of Modi Ji's tireless efforts and personal rapport with global leaders leading to big breakthroughs for #NayaBharat #NewIndia @PMOIndia @POTUS.” PTI AAM NN

US tariff reduction to 18% on Indian goods improves market access and boosts exporters, manufacturing and MSMEs. A bilateral trade agreement lowered the reciprocal tariff on Indian goods in the United States from 25% to 18%, modifying customs duties applicable to Indian exports and enhancing market access. The reduction is intended to benefit Indian manufacturing, exporters, MSMEs, and job creation by increasing competitiveness in US markets and supporting deeper commercial cooperation under the agreement's reciprocal tariff structure.