Historic Trade Deal: India Boosts U.S. Partnership with Sweeping Purchases

India has agreed to a significant trade deal with the U.S., involving major purchases of petroleum, defense goods, and aircraft. In return, the U.S. will reduce tariffs on Indian goods. This deal also includes India opening parts of its agriculture sector and affects various sectors, improving economic ties between the nations.

In a landmark development, India has committed to purchasing substantial quantities of U.S. goods, including petroleum, defense equipment, and aircraft, as announced by officials following a trade deal between the two countries. This deal comes as a reconciliatory step post months of tension.

President Donald Trump declared that this agreement will see U.S. tariffs on Indian goods slashed from 50% to 18%, provided India suspends Russian oil imports and eases trade restrictions. Under the pact, India's acquisition of American goods is expected to escalate to $500 billion, encompassing energy, coal, technology, pharmaceuticals, and telecom.

India has already extended similar market access for agricultural products to the European Union and has reduced tariffs on imported vehicles to align with U.S. conditions. Consequently, India's economic landscape is witnessing a surge in investor confidence, reflected by the increased Nifty 50 index and a stronger rupee.

(With inputs from agencies.)