9FEBRUARY 2026US-INDIA TRADE DEAL SEALED AS TRUMP CUTS TARIFFS TO 18%PRAJ INDUSTRIES VALIDATES ETHANOL-TO-JET SAF TECHNOLOGY DEMOThe US-India trade deal took a major step forward on Monday after President Donald Trump announced a sharp cut in reciprocal tariffs on Indian goods, lowering them to 18% from 25%.Trump shared the news on Truth Social following a phone call with Prime Minister Narendra Modi, calling the agreement a result of "friendship and respect" between the two leaders.The announcement comes over five months after Washington imposed 50% tariffs on several Indian exports, Praj Industries has successfully demonstrated its Ethanol-to-Jet (EtJ) SAF process using Axens' JetanolTM technology at its fully integrated Sustainable Aviation Fuel demonstration plant at Praj Matrix.The milestone, announced at Wings India 2026, strengthens the readiness of low-carbon fuel solutions as aviation moves toward cleaner alternatives. Senior DGCA officials including Maneesh Kumar and Faiz Ahmed Kidwai joined the SAF roundtable chaired by Samir Kumar Sinha, with leaders from Praj and Axens on the panel.including a 25% punitive duty linked to India's purchase of Russian crude oil. Trump said New Delhi has agreed to stop buying Russian oil and instead increase purchases from the US and possibly Venezuela, a move he claimed would help bring an end to the Russia-Ukraine war. He also said India would move to reduce tariffs and non-tariff barriers on US goods to "ZERO."Modi responded on X, thanking Trump "on behalf of the 1.4 billion people of India" and welcoming the reduced 18% tariff on Made in India products. He said stronger cooperation between the world's largest democracies would unlock major opportunities and praised Trump's leadership on global peace and stability.According to Trump, India has also committed to "buy American" at a much higher level, including over $500 billion worth of US energy, technology, agriculture, coal, and other products.The US-India trade deal is being shaped through two tracks--an early harvest agreement and a broader Bilateral Trade Agreement. Talks began in March and have included several rounds, with negotiations continuing virtually after recent pauses.Calling the deal a market relief, Nilesh Shah of Kotak Mahindra AMC said it removes pressure on the rupee and financial markets, adding that both countries stand to gain from closer cooperation. The plant, earlier inaugurated by Union Minister Hardeep Singh Puri, has now proven both major Alcohol-to-Jet pathways. After initial validation with bio-isobutanol, the facility has confirmed bio-ethanol as a viable feedstock on the Ethanol-to-Jet route. This boosts Praj's feedstock flexibility and reinforces its SAF technology portfolio.Axens, a global supplier of cleaner fuel technologies and catalysts, has licensed the JetanolTM AtJ technology to Praj. The agreement covers key stages including dehydration, oligomerization, hydrogenation, plus catalyst support and technical expertise. With this progress, Praj says it's the first company globally to offer a fully integrated end-to-end engineering and technology package for the AtJ pathway, ready for commercial rollout and producing drop-in SAF compliant with ASTM D7566.Praj has supported real SAF use in India, including an AirAsia India flight from Pune to New Delhi using SAF blended fuel developed with Indian Oil. Dr. Pramod Chaudhari emphasized science-led decarbonization and scalable deployment models. Quentin Debuisschert noted the partnership will help producers adopt scalable SAF production. Industry bodies highlight India's strong potential to become a major SAF producer through AtJ, tied to policy, feedstock supply, and collaboration.
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