Breakthrough Indo-US Trade Pact: A Boost for India's Economy

The newly announced Indo-US bilateral trade pact is set to positively impact the Indian economy amid global uncertainties. The agreement will see the US lowering its tariff on Indian goods, fostering stronger economic momentum in India. This deal follows a conversation between PM Narendra Modi and US President Donald Trump.

The Indo-US bilateral trade pact announcement has dissipated economic uncertainties, promising positive outcomes for the Indian economy amidst global challenges. The agreement includes a reduction of the US reciprocal tariff on Indian goods from 25% to 18%, a breakthrough following discussions between PM Narendra Modi and President Donald Trump.

Economic Affairs Secretary Anuradha Thakur highlighted India's resilience in a rapidly changing global landscape and expressed optimism that the economy might surpass the anticipated growth rate of 6.8-7.2% by 2026-27. Thakur also emphasized the government's commitment to fiscal transparency and adherence to the budgetary projections.

Financial Services Secretary M Nagaraju affirmed that the agreement lifts significant uncertainty from the world economy, boosting confidence in India's economic trajectory. However, he acknowledged the need for accelerated credit growth in the banking sector to fully align with the vision for a developed India by 2047, suggesting forthcoming recommendations from a high-level expert committee.