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India-US Trade Deal Cuts Tariffs to 18%, PM Modi & Trump Hail New Era

Union Defence Minister Rajnath Singh hailed a historic trade deal between India and the United States, which will lower tariffs to 18%. The agreement was reached following a phone call between Prime Minister Narendra Modi and US President Donald Trump. PM Modi expressed delight that 'Made in India' products will benefit from reduced tariffs, while Trump noted India would stop buying Russian oil. Both leaders stated the deal would significantly strengthen the strategic partnership and bilateral economic ties.

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

  • Tariffs cut to 18%
  • Strategic partnership strengthened
  • Deal finalised via Modi-Trump call
  • India to stop buying Russian oil
  • Boost for 'Made in India' exports
2 min read

India-US economic ties set to reach new heights: Rajnath Singh welcomes trade deal

Defence Minister Rajnath Singh hails historic India-US trade agreement that lowers tariffs to 18%, with PM Modi and President Trump praising strengthened ties.

"A landmark moment for India-US relations - Rajnath Singh"

New Delhi, Feb 3

Union Defence Minister Rajnath Singh on Tuesday hailed the India-US trade deal and said that it will open a new phase of "deeper and greater cooperation" between the two nations.

In a post on X, Singh said, "A landmark moment for India-US relations as a historic trade deal has been finalised, bringing tariffs down to a significantly lower 18 per cent and opening a new chapter of deeper and greater economic cooperation."

Congratulating Prime Minister Narendra Modi and US President Donald Trump on reaching a "decisive agreement", the Defence Minister said that it will "significantly strengthen our strategic partnership and deliver tangible benefits to both the countries and their people."

"With this agreement, India-US economic ties are set to reach new heights," he added.

Earlier on Monday, Trump said a phone call with Prime Minister Narendra Modi led to the deal, cutting US tariffs on Indian goods to 18 per cent and easing Indian trade barriers on US products.

Trump 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
While the economic benefits are clear, I hope the government has negotiated well on the agricultural products clause. Our farmers must be protected from unfair competition.
R
Rohit P
Stopping Russian oil is a big strategic shift. Hope the deal for US energy is cost-effective for our country. Jai Hind!
P
Priya S
Good step forward. But let's see the fine print. The real test will be if this translates to cheaper electronics and better tech access for the common man.
V
Vikram M
Two largest democracies strengthening ties is always welcome. This partnership is crucial for stability in our region and beyond. Well done to the negotiators.
M
Michael C
As an observer, this seems like a win-win. Lower tariffs benefit consumers in both countries. The geopolitical alignment, especially regarding Ukraine, is significant.

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