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India-US Trade Deal Sealed: Tariffs Slashed to 18% in Historic Pact

India and the United States have finalised a significant trade agreement, reducing US tariffs on Indian goods to 18 per cent. The deal was secured following a phone call between Prime Minister Narendra Modi and President Donald Trump. Indian Minister Nitin Gadkari hailed the pact as a "defining step" that strengthens trust and opens new avenues for growth. As part of the understanding, India will also halt purchases of Russian oil and increase imports of US energy and agricultural products.

Key Points: India-US Trade Deal Finalised, Tariffs Cut to 18%

  • US tariffs on Indian goods cut to 18%
  • Deal followed Modi-Trump phone call
  • India to stop buying Russian oil
  • Aims to boost trade and investment
  • Supported as a step for peace in Ukraine
2 min read

Defining step forward in India-US economic relations: Nitin Gadkari on trade deal

India and US finalise trade deal, cutting tariffs to 18%. PM Modi and President Trump hailed for leadership. Deal aims to boost economic ties and cooperation.

"Today marks a defining step forward in India-US economic relations - Nitin Gadkari"

New Delhi, Feb 3

Nitin Gadkari, Union Minister of Road Transport and Highways, on Tuesday welcomed the India-US trade deal, calling it a "defining step" forward in bilateral economic ties.

India and the US reached a trade deal on Monday following a phone call between PM Modi and President Trump, cutting US tariffs on Indian goods to 18 per cent and easing Indian trade barriers on US products.

"Today marks a defining step forward in India-US economic relations as the trade deal is finalised with tariffs reduced to 18 per cent, opening new avenues for growth and cooperation. My heartfelt congratulations to Hon'ble PM Narendra Modi and President Donald Trump for their leadership in securing this historic outcome," Gadkari posted on X.

He further stated that the agreement "strengthens trust, boosts business confidence, and sets the stage for deeper trade, investment, and shared prosperity for both nations".

Earlier on Monday, Trump said a phone call with Prime Minister Narendra Modi led to the deal.

He said India would also stop buying Russian oil and increase purchases of US energy, technology and agricultural products. He said the agreement would strengthen ties between the two countries and support efforts to end the war in Ukraine.

PM Modi also took to X and said, "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."

He said that when two "large economies" and the "world's largest democracies" work together, "it benefits our people and unlocks immense opportunities for mutually beneficial cooperation".

Hailing President Trump's "leadership" in advocating for global peace, stability, and prosperity, the Prime Minister said, "India fully supports his efforts for peace".

"I look forward to working closely with him to take our partnership to unprecedented heights," PM Modi added.

- IANS

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Reader Comments

S
Sarah B
As someone working in the tech sector, I'm hopeful about the increased purchase of US technology mentioned. Could lead to better tech transfers and collaborations. Fingers crossed!
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Rohit P
Good step, but I hope our farmers are protected. "Increasing purchases of US agricultural products" worries me. Our government must ensure MSP and market access for our own annadatas first.
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Priya S
Stopping Russian oil is a big geopolitical move. Hope the switch to US energy doesn't make petrol and diesel more expensive for the common man. That's the real test.
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Michael C
Stronger India-US ties are crucial for global stability. The economic partnership is one pillar, but shared democratic values are the foundation. Hopeful for the future.
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Kavya N
"Defining step" is right! This deal has been in the works for ages. Kudos to the negotiators. Now let's see the fine print and how it actually plays out on the ground. 🤞

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