Historic India-US Trade Deal Slashes Tariffs to Boost Export Opportunities

A landmark trade agreement between India and the US will lower tariffs on Indian goods to 18%. This move is expected to enhance trade, particularly benefiting India's labor-intensive and manufacturing sectors targeting the American market, according to Revenue Secretary Arvind Shrivastava.

The landmark India-US trade deal is set to significantly boost exports from India to the United States by reducing tariffs on Indian goods to 18%, a substantial decrease from the previously imposed 50% by the Trump administration. This development, confirmed by top finance ministry officials, is expected to open up greater opportunities for India's labor-intensive and manufacturing sectors to tap into the lucrative American market.

During a recent phone conversation, US President Donald Trump and Indian Prime Minister Narendra Modi agreed on the new terms of trade, marking a new era in the economic relationship between two of the world's largest economies. This arrangement is seen as a positive step towards enhancing the trade relations between the countries, fostering increased collaboration, especially in high and advanced technology sectors.

In a post on social media, Prime Minister Modi expressed his delight over the reduced tariff rates, highlighting the positive impact this will have on 'Made in India' products. The new tariff is notably lower than those for countries like China, Bangladesh, and Vietnam, setting the stage for a marked increase in India's exports to the US.

(With inputs from agencies.)