India Advances Western Economic Ties with Landmark US Trade Agreement

India and the US have reached a phase-one trade agreement, reducing tariffs and paving the way for deeper economic cooperation. The deal comes amid India's efforts to strengthen ties with Western economies, including the EU. The agreement reduces tariffs on Indian goods to 18% and aims for further reduction.

In a significant move towards strengthening economic ties with Western nations, India and the United States have announced a phase-one trade agreement. This development was highlighted by Partner Asia Group's Nisha Biswal, who emphasized that the deal could ease tariff tensions and foster deeper cooperation between the two nations.

The agreement, announced by US President Donald Trump and Indian Prime Minister Narendra Modi, follows a recent EU-India free trade agreement. This new pact reduces tariffs on Indian goods to 18% and outlines a path to potentially eliminate tariffs altogether on several products. This initiative aligns with India's broader strategy to bolster economic relationships with the West.

Addressing concerns about energy imports from Russia, Biswal noted that the sustainability of the agreement depends on both governments' implementation commitment. The reduction comes after Trump's administration levied a 50% tariff, which included a 25% surcharge related to Russian oil imports. In their statements, both leaders underscored the mutual benefits of the trade deal and emphasized the importance of their diplomatic relationship.

(With inputs from agencies.)