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India-US Trade Deal Finalized: Tariffs Cut to 18%, $500B Import Boost

India and the United States are in the final stages of detailing a trade agreement, with a joint statement expected this week. The deal involves reducing reciprocal tariffs and commits India to significantly increase imports from the US across key sectors. Commerce Minister Piyush Goyal emphasized that the agreement protects India's sensitive sectors like agriculture and dairy while offering tremendous opportunity. The announcement follows a landmark agreement with the European Union and a conversation between the Indian Prime Minister and the US President.

Key Points: India-US Trade Deal: Joint Statement, Tariff Cuts, $500B Imports

  • Reciprocal tariffs cut from 25% to 18%
  • India to increase US imports by $500 billion
  • Sensitive agriculture and dairy sectors protected
  • Deal boosts export competitiveness and economic ties
3 min read

India, US likely to issue joint statement on trade agreement this week: Govt sources

India and US to issue trade deal statement. Tariffs cut from 25% to 18%, India to increase US imports by $500B in energy, tech, agriculture, defence.

"This is a great deal for all of us. - Piyush Goyal"

New Delhi, February 3

India and the US are likely to issue a joint statement on the trade agreement this week, according to government sources.

"We are under final stages of detailing with the negotiating team. A joint statement of the India-US trade deal is likely to be issued this week," said the source.

The deal involves reducing reciprocal tariffs from 25% to 18% and eliminating the additional 25% duty on Russian oil imports into India. India has also agreed to increase imports from the US by $500 billion, covering sectors like energy, technology, agriculture, and defence.

The agreement will boost India's export competitiveness, attract investments, and strengthen economic ties with the US.

Earlier on Tuesday, Commerce and Industry Minister Piyush Goyal said that the India-US Trade Agreement brings tremendous opportunity to the country and is the best deal India has received compared to all its neighbours.

Addressing a press conference a day after the India-US trade deal was announced, Goyal said that India's interests have been prioritised.

"We all know that the Prime Minister, leveraging his friendly relationship and close ties with President Trump, has finalised a trade deal with the United States of America that is the best deal India has received compared to all our neighbours, all the surrounding countries, and all the countries that compete with us. This is a great deal for all of us," he said.

The Commerce Minister also said that the sensitive sectors of India's economy, particularly agriculture and dairy, have been protected in the India-US trade deal.

Addressing a press conference here, Piyush Goyal said that Prime Minister Narendra Modi has always championed the agriculture and dairy sectors, safeguarding their interests and working tirelessly to ensure a bright future and ample opportunities for their workers.

"I am pleased that the entire country understands and appreciates this, and it resonates deeply with them. The sensitive factors of India's economy, particularly agriculture and dairy, have been protected. We have seen reports from across the country; there is widespread enthusiasm," he said.

The trade deal with the United States comes just a week after India signed a landmark agreement with the European Union.

PM Modi spoke with US President Donald Trump on Monday. He later said that it was wonderful to speak with his "dear friend President Trump" and expressed delight that Made in India products will now have a reduced tariff of 18%.

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," PM Modi said in a post on X on Monday.

The Prime Minister said that when two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutual benefit.

"President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights," PM Modi said.

India and the European Union (EU) had on January 27 announced the conclusion of negotiations for a Free Trade Agreement (FTA), an important milestone in one of India's most strategic economic partnerships.

- ANI

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Reader Comments

P
Priya S
Glad to hear that agriculture and dairy have been protected. These are sensitive sectors for millions of our farmers. The government must ensure that the promised $500 billion in imports from the US doesn't hurt our local industries in the long run.
R
Rohit P
Deal with the US, deal with the EU... India is on a signing spree! This is strategic diplomacy at its best. Strengthening ties with the West is crucial for countering China's influence in the region. A strong economy means a strong nation.
S
Sarah B
As someone working in tech, the mention of increased cooperation in technology is exciting. Could mean more opportunities for Indian IT firms and easier access to cutting-edge US tech. Hope it also includes provisions for easier mobility of skilled professionals.
V
Vikram M
The part about eliminating the additional 25% duty on Russian oil is a masterstroke. It helps manage our energy costs while navigating the complex global situation. Practical foreign policy that puts our national interest first. 👏
K
Karthik V
While the deal sounds good on paper, I hope the details are made public transparently. The claim that it's the "best deal compared to all neighbours" needs scrutiny. We've seen trade deals before where the fine print had hidden costs for consumers.
M
Michael C

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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