India Secures Trade Edge Over Rivals with US Deal, Reducing Tariffs to 18% - India News

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In a significant boost to its trade prospects, India has secured a trade deal with the US, reducing tariffs on Indian goods to 18%. The deal, announced by US President Donald Trump, places India in a stronger position than key regional rivals, including China, Pakistan, and Bangladesh. The agreement, which comes after nearly a year of intense negotiations, has been hailed as a major victory for Prime Minister Narendra Modi, who has been a key player in the talks. The deal is expected to provide significant relief to India's textile sector, which has been heavily dependent on the US market. According to the deal, the US will reduce tariffs on Indian goods from 25% to 18%, giving Indian exporters a major advantage over their rivals. In contrast, China faces tariffs of 34%, while Indonesia, Bangladesh, and Vietnam are subject to 19% and 20% tariffs, respectively. Pakistan, despite its warming ties with Washington, continues to face tariffs of 19%. The deal is expected to have a significant impact on global supply chains, which are being recalibrated in response to the ongoing trade tensions. The reduction in tariffs is also expected to provide a major boost to Indian exports, which have been hampered by the high duties imposed by the US. Prime Minister Modi welcomed the announcement, describing it as a major achievement for India's exporters. "I am delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," he said in a post on X. US President Trump also praised the deal, describing it as a testament to his close friendship with Prime Minister Modi. "It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country," he said in a post on Truth Social. As part of the deal, India has agreed to reduce tariffs and non-tariff barriers against the US. The US has also agreed to withdraw the additional 25% tariff imposed on Indian imports over New Delhi's purchase of Russian oil. The deal is expected to have a significant impact on the global trade landscape, and is seen as a major victory for India's exporters. It remains to be seen how the deal will affect the country's economic prospects, but it is clear that the reduction in tariffs will provide a major boost to Indian exports.