India-US Trade Deal Breakthrough: Tariff Reduction and New Opportunities
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The long-awaited India-US trade deal has been announced, marking a significant breakthrough in bilateral relations. US President Donald Trump and Indian Prime Minister Narendra Modi reached an agreement over a phone call, reducing tariffs on Indian goods to 18% and paving the way for a stronger economic partnership. According to experts at The Asia Group, this deal is a welcome signal that both countries are seeking to restore a more positive trajectory in their bilateral ties. Kurt Campbell, co-founder and chairman of the group, noted that the agreement takes a back seat to the recent Europe-India accord but will help restore normalcy to bilateral relations. Basant Sanghera, a managing principal at TAG, described the trade agreement as a milestone moment in the eight-decade-long India-US diplomatic ties. He stated that the deal will provide notable tariff relief for New Delhi and represents a key achievement for the Trump administration's trade diplomacy. Mark Linscott, a senior advisor with TAG, highlighted the economic implications of the agreement, saying it will put the bilateral relationship back on track after a roller coaster ride in recent months. Aman Raj Khanna, a partner at The Asia Group, added that the timely resolution provides relief to exporters on both sides, who have weathered significant uncertainty in the intervening months. The trade agreement also creates a foundation for renewed trust-building and cooperation across sectors such as AI, defense, and emerging technologies. Nisha Biswal, a Partner at TAG, noted that the deal will pave the way for a much bigger economic partnership between the two countries. Ashok Malik, a partner and Chair of India Practice at TAG, stated that the India-US trade deal will provide reassurance to business stakeholders on both sides, particularly in strategic sector manufacturing and in the technology and digital domain. In a statement, President Trump announced the deal on Truth Social, saying it will strengthen the US-India relationship. He claimed that India agreed to stop buying Russian oil and would instead purchase more from the US and potentially Venezuela. Prime Minister Modi also welcomed the agreement, saying that Indian products will now face a reduced tariff of 18% and extending a big thank you to Trump on behalf of the entire nation. He emphasized the benefits of cooperation between two large economies like India and the US, which will unlock immense opportunities for mutually beneficial cooperation. The deal is seen as a significant step forward in the India-US relationship, which has been strained in recent months. It creates a foundation for renewed trust-building and cooperation across key sectors and sets the stage for a more comprehensive agreement in the future.
