Historic U.S.-India Trade Deal: Slashed Tariffs and Expanded Purchases

The U.S. and India have secured a trade agreement lowering U.S. tariffs on Indian goods from 50% to 18%. In return, India agreed to halt Russian oil purchases and boost its imports of U.S. energy, technology, and agricultural products. This agreement aims to enhance bilateral trade relations.

The United States and India have reached a significant trade deal aimed at enhancing bilateral economic ties. Under the agreement, U.S. tariffs on Indian goods will be reduced from 50% to 18%, while India will increase its imports of U.S. energy, coal, technology, and agricultural products.

This breakthrough deal also sees India committing to halt oil purchases from Russia, further diversifying its energy sources to include the U.S., Middle East, Africa, and South America. The mutual trade benefit is envisaged to be substantial, with enhanced access for Indian exports like textiles, pharmaceuticals, and food items to the U.S. market.

Despite the optimism around this deal, certain U.S. duties, especially on steel and aluminium, are likely to remain. Nonetheless, the announcement has buoyed investor sentiment with positive movements in currency and stock markets, signaling confidence in the strengthened trade partnership.

(With inputs from agencies.)