NewKerala.com

India-US Trade Deal Cuts Tariffs, Boosts Energy Ties Under Modi-Trump

Indian Ambassador Vinay Mohan Kwatra hailed a new US-India trade deal as a win for the partnership under Prime Minister Narendra Modi and President Donald Trump. The agreement immediately reduces the US tariff on Indian goods from 25% to 18% and commits India to stop purchasing Russian oil. President Trump stated the deal includes India buying over $500 billion in US energy, technology, and agricultural products, linking it to goals of ending the war in Ukraine. Both leaders praised their strong personal relationship and commitment to taking the bilateral partnership to new heights.

Key Points: India-US Trade Deal Announced by Modi and Trump

  • US cuts tariff on Indian goods to 18%
  • India to stop buying Russian oil
  • Deal includes $500B in US energy & tech purchases
  • Aimed at helping end Ukraine war
  • Takes effect immediately
3 min read

Trade deal heralds exciting new phase in our partnership: Indian envoy to US

US-India trade deal slashes tariffs, aims to end Russian oil imports, and unlocks $500B in energy & tech purchases, heralding a new partnership phase.

"Today's announcements herald an exciting new phase in our partnership. - Vinay Mohan Kwatra"

Washington, Feb 3

Indian Ambassador to the US, Vinay Mohan Kwatra, on Tuesday hailed the trade deal between the two nations and said that the new announcements "herald an exciting new phase in our partnership".

This came as India and the US reached a trade deal on Monday.

Taking to X, the Indian Ambassador said, "A big WIN for a consequential partnership under the leadership of Prime Minister Narendra Modi and President Donald Trump. India and USA announce a trade deal creating vast new opportunities for the two economies and the people of our two great nations. Today's announcements herald an exciting new phase in our partnership."

Earlier on Monday, the US President said that India and the United States had reached a trade deal, outlining key elements after a phone conversation with PM Modi, whom he described as "one of my greatest friends."

In a detailed post on Truth Social, Trump said the agreement would immediately reduce the US reciprocal tariff on Indian goods from 25 per cent to 18 per cent, calling it a major shift in bilateral trade ties linked to energy cooperation and broader geopolitical goals.

Trump said the two leaders discussed "many things, including Trade, and ending the War with Russia and Ukraine." He claimed that PM Modi agreed to stop buying Russian oil and to increase purchases from the United States and, potentially, from Venezuela.

"This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!" Trump wrote.

According to Trump, the trade deal would take effect immediately. He said India would "move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO."

Trump also said PM Modi is committed to "BUY AMERICAN" at a much higher level. He added that India would purchase "over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products."

"Our amazing relationship with India will be even stronger going forward," Trump wrote. "Prime Minister Modi and I are two people that GET THINGS DONE."

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

Share this article:

Reader Comments

P
Priya S
While the trade deal sounds promising, I'm concerned about the commitment to stop buying Russian oil. Our energy security and affordable fuel prices for the common man must not be compromised. Hope the government has a solid plan B.
R
Rohit P
"Buy American" at a much higher level? And we are to reduce our tariffs to zero? We must ensure this is truly a two-way street. Our markets should not just become a dumping ground for US goods. The details matter.
S
Sarah B
As someone working in the tech sector, the mention of purchasing US technology is interesting. If it leads to better tech transfer and collaboration, it could boost our IT ecosystem. But we must also protect and promote our own startups.
V
Vikram M
Strong India-US ties are crucial for our global standing. If this deal helps position India as a reliable partner and a counterbalance to China in global trade, it's a strategic masterstroke. Jai Hind!
K
Kavya N
$500 billion is an unimaginably large number. I hope our farmers benefit from the agricultural part of this deal and that our local agriculture is not negatively impacted by imports. The government must safeguard our annadatas.

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

Leave a Comment

Minimum 50 characters 0/50