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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 (February 2) after a phone conversation with Prime Minister Narendra Modi.
Also read: Trump's tariffs bite India, exports to US fell by 12 pc
Modi said he was delighted that "Made in India products will now have a reduced tariff of 18 per cent".
"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," Modi said.
Also read: Thanks, but no thanks. India doesn’t really need US soybean, corn or milk
The PM said when two large economies and the world's largest democracies work together, it benefits the people and "unlocks immense opportunities for mutually beneficial cooperation".
"President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace," he said on 'X'.
Also read: India-US ties special; nothing to worry about: Trump
Here is the top, trending news of Tuesday, February 3, 2026, including Indian politics, states' politics, geopolitics, federal issues, economics, development issues, sports, entertainment, and so on.
Read updates below.
Live Updates
- 3 Feb 2026 8:40 AM IST
Trump administration to create strategic reserve for rare earth elements
The Trump administration plans to deploy nearly USD 12 billion to create a strategic reserve of rare earth elements, a stockpile that could counter China's ability to use its dominance of these hard-to-process metals as leverage in trade talks.
The White House confirmed on Monday (February 2) the start of “Project Vault”, which would initially be funded by a USD 10 billion loan from the US Export-Import Bank and nearly USD 1.67 billion in private capital. The minerals kept in the reserve would help to shield the manufacturers of autos, electronics, and other goods from any supply chain disruptions.
During trade talks last year spurred by President Donald Trump's tariffs, the Chinese government restricted the exporting of rare earths that are needed for jet engines, radar systems, electric vehicles, laptops, and phones. China represents about 70 per cent of the world's rare earths mining and 90 per cent of global rare earths processing. That gave it a chokehold on the sector that has caused the US to nurture alternative sources of the elements, creating a stockpile similar to the national reserve for petroleum.
The strategic reserve is expected to be the highlight of a ministerial meeting on critical minerals that Secretary of State Marco Rubio will host at the State Department on Wednesday (February 4). Vice President JD Vance plans to deliver a keynote address at the meeting, which officials from several dozen European, African, and Asian nations plan to attend. The meeting is also expected to include the signing of several bilateral agreements to improve and coordinate supply chain logistics.
The government-backed loan funding the reserve would be for a period of 15 years. The US government has previously taken stakes in the rare earths miner MP Materials, as well as providing financial backing to the companies Vulcan Elements and USA Rare Earth.
- 3 Feb 2026 8:35 AM IST
NASA’s moon rocket hit by fuel leak during practice countdown
NASA ran into a leak while fuelling its new moon rocket on Monday (February 2) in one final make-or-break test that will determine when astronauts can launch on a lunar fly-around.
The launch team began loading the 322-foot (98-metre) rocket with super-cold hydrogen and oxygen at Kennedy Space Center at midday. More than 700,000 gallons (2.6 million litres) had to flow into the tanks and remain on board for several hours, mimicking the final stages of an actual countdown.
But just a couple hours into the daylong operation, excessive hydrogen was detected near the bottom of the rocket. Hydrogen loading was temporarily halted, with just half of the core stage filled.
The launch team scrambled to work around the problem using techniques developed during the only other Space Launch System rocket launch three years ago. That first test flight was plagued by hydrogen leaks before finally soaring.
The crew, three Americans and one Canadian, monitored the critical dress rehearsal from nearly 1,000 miles (1,600 kilometers) away in Houston, home to Johnson Space Center. They have been in quarantine for the past one-and-a-half weeks, awaiting the practice countdown's outcome.
The all-day operation will determine when they can blast off on the first lunar voyage by a crew in more than half a century. NASA last sent astronauts to the moon during the 1960s and 1970s Apollo program. The new Artemis program aims for a more sustained lunar presence, with Wiseman's crew setting the stage for future moon landings by other astronauts.
- 3 Feb 2026 8:04 AM IST
India leading in global aviation growth, says report
Asia is emerging as the engine of global aviation growth, with India, China and Southeast Asia forecast to account for eight of the world’s 10 fastest-growing air travel markets between 2024 and 2044, according to a whitepaper released on Monday, ahead of the 2026 Singapore Airshow.
The paper by Alton Aviation Consultancy outlines that international traffic in Asia-Pacific grew by 8.0 per cent in 2025, outpacing global RPK growth of 6.8 per cent. Carriers across the region have launched more than 600 new routes since 2015, significantly improving access to underserved destinations and enhancing intra-regional connectivity.
The whitepaper highlights India as one of the world’s fastest-growing aviation markets, underpinned by robust economic fundamentals and a rapidly expanding middle class.
While China continues to play a dominant role, Alton notes that Southeast Asia is an emerging growth region, led by markets such as Indonesia, Vietnam, and the Philippines.
- 3 Feb 2026 7:20 AM IST
'Modi agreed to stop buying Russian oil': Trump after US-India trade deal
"It was an Honor to speak with Prime Minister Modi, of India, this morning... He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine," said US President Donald Trump.
- 3 Feb 2026 7:14 AM IST
India, US trade deal unlocks huge opportunities for farmers, industries: Goyal
Commerce and Industry Minister Piyush Goyal on Tuesday said the India-US trade agreement will open up huge opportunities for domestic farmers, MSMEs, entrepreneurs, and skilled workers and promote Make in India initiative.
India and the US have 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.
Goyal said it will help India get technology from the US.
"This agreement unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, Design in India for the world, and Innovate in India for the world," Goyal said in a post on social media.
He added that the development reflects the power of two like-minded, fair-trading democracies working together for shared prosperity.
"Both India and US are natural allies and our partnership will co-create technologies, co-develop solutions, and work together for peace, growth, and a brighter future for India and US," he added.
- 3 Feb 2026 7:14 AM IST
Turkey seeks to broker US-Iran talks by week's end
Turkey is attempting to bring US and Iranian officials to the negotiating table in hopes of easing the threat of US military action against Iran.
Neither the US nor Iran has confirmed whether they plan to take part in any negotiations. Two Turkish officials, who spoke on the condition of anonymity because they were not authorized to speak to the media, said Turkey is trying to organize a meeting between US special envoy Steve Witkoff and Iranian leaders. The meeting could take place as soon as the end of the week, one of the officials said.
The US military has moved the USS Abraham Lincoln and several guided-missile destroyers into the Middle East, but it remains unclear whether US President Donald Trump would decide to use force against the Iranian government, as he has suggested he might do in retribution for their devastating crackdown on last month's protests and as he presses for a deal on Iran's nuclear program.
"We have talks going on with Iran, we'll see how it all works out,” Trump told reporters in the Oval Office. Asked what his threshold was for military action against Iran, he declined to elaborate.
“I'd like to see a deal negotiated,” Trump said. “Right now, we're talking to them, we're talking to Iran, and if we could work something out, that'd be great. And if we can't, probably bad things would happen.” AP
- 3 Feb 2026 6:54 AM IST
'Not father of all deals': Congress on India-US trade deal
The Congress took a swipe at the Narendra Modi government on Monday after President Donald Trump announced that the US and India have agreed to a trade deal, saying it appears the prime minister has "capitulated finally" and that this "cannot be the father of all deals".
Reacting to Monday's developments, Congress general secretary in charge of communications Jairam Ramesh said that in Washington, "clearly Mogambo Khush Hai", a play on a popular dialogue from the 1987 Hindi movie Mr India.
"He (Trump) announced the halt of Operation Sindoor from Washington DC. He announced the updates on India's oil purchases from Russia and Venezuela from Washington. He's now announced an India-US Trade Deal from Washington, the full details of which are awaited," Ramesh said in a post on X.
"President Trump clearly seems to have some leverage over Prime Minister Modi -- who is now mortified of even being seen with him, let alone engaging in the usual bout of hugs. It appears Mr Modi has capitulated finally. Surely this cannot be the father of all deals," he said.
Earlier, the Congress took a swipe at the government after the US ambassador to New Delhi confirmed that President Trump has spoken with Prime Minister Modi, saying it now seems to be a routine that India gets to know of its government's actions only from Trump or his appointees.
In a social media post, US Ambassador Segio Gor said Trump spoke with Modi on Monday. "President Trump just spoke with Prime Minister Modi. STAY TUNED," Gor said in the post.
Reacting to the development, Ramesh said, "It seems that Prime Minister Modi and President Trump spoke to each other today. This information has been provided not by the Indian side but by the US Ambassador to India.
"This now seems to be the routine -- India gets to know of its government's actions only from President Trump or his appointees. Trump-nirbharta," the Congress leader said on X.
- 3 Feb 2026 6:47 AM IST
It will strengthen 'Make in India' endeavours, spur growth: Jaishankar on India-US trade deal
External Affairs Minister S Jaishankar on Tuesday welcomed the India-US trade agreement, saying it will spur growth in both economies and strengthen the country's 'Make in India' endeavours.
Jaishankar, who is on a three-day visit to the US to attend a Washington-led ministerial meeting on critical minerals supply chain, said he "welcomed the announcements on bilateral trade".
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', Jaishankar said, "This will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavors and encourage trusted technology ties." "The opportunities in our economic engagement are truly vast and we are confident of realizing them. A robust economic relationship is the strongest foundation for our strategic partnership," the external affairs minister added.
- 3 Feb 2026 6:46 AM IST
Lower tariffs under India-US trade pact to aid engineering exports: EEPC India
EEPC India on Monday welcomed the announcement of a trade deal with the US under which Washington will lower reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, and said it could significantly boost engineering shipments.
“While the detailed contours of the agreement are yet to be made public, the Prime Minister’s message clearly mentioned lower tariffs for Made in India products, which is very good news,” Shah said, adding that the US remains India’s largest trading partner.
India and the US agreed on a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, US President Donald Trump said on Monday, after a phone conversation with Prime Minister Narendra Modi.
The engineering sector, which contributes nearly one-fourth of India’s total merchandise exports, is expected to be among the biggest beneficiaries of the trade deal.
Shah said the anticipated tariff relief could result in stronger-than-expected growth in engineering exports in the current financial year.
“The tariff boost should help the engineering industry end the year on a strong note, and also lay the foundation for a much better 2026-27 in terms of global exports,” he said.
However, Shah said it would be premature to quantify the exact impact on engineering exports until the agreement’s sector-wise details are formally announced.
He said exporters are awaiting clarity on product categories and market access provisions.
“Once the finer details are available, we will have a clearer picture of how much Indian engineering exports stand to gain,” Shah said.
- 3 Feb 2026 6:46 AM IST
'An important and positive first step', USISPF on US-India agreement
The US-India Strategic Partnership Forum (USISPF) on Monday enthusiastically welcomes US President Donald Trump’s announcement following his conversation with Prime Minister Narendra Modi, which reaffirms their shared commitment to deepen the US–India economic partnership and advance a bilateral trade agreement. India and the US agreed on a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, US President Donald Trump announced on Monday in a Truth Social post.
USISPF said that the reduction of India's reciprocal tariff marks "an important and positive first step.” “While the agreement's specifics are pending, today’s announcement signals strong political will on both sides to move toward a comprehensive US–India Bilateral Trade Agreement (BTA) that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors,” it said.
