Historic Trade Deal: India-US Tariff Reduction Sets Stage for Broader Economic Partnership

India and the US have agreed on a trade deal reducing tariffs on Indian goods from 25% to 18%. While former ambassadors hail this as historic, they highlight the ongoing need for a comprehensive bilateral agreement. The tariff cut is expected to benefit industries and enhance bilateral collaborations.

India and the United States have entered a landmark trade agreement that will see the reduction of tariffs on Indian goods from 25% to 18%. This development has been warmly received by former diplomats, who describe it as a "historic deal" and a testament to effective quiet diplomacy.

The trade arrangement is considered a foundational step toward a comprehensive bilateral trade agreement. Leading business organizations believe it will foster increased private sector collaboration, offering new opportunities in areas beyond current trade relations.

Ambassadors emphasize that while tariffs are now lower than those for any competitor, there are still hurdles to overcome in finalizing a full bilateral trade agreement, as discussions continue on critical issues such as data storage and e-commerce.

(With inputs from agencies.)