India-US Trade Deal: US President Donald Trump said on Monday that India and the United States have reached a trade agreement. Prime Minister Narendra Modi welcomed the move, saying he was pleased that tariffs on “Made in India” goods would be reduced to 18 percent. Previously, the US had imposed tariffs of up to 50 percent on Indian products, including a 25 percent duty due to India’s purchase of oil from Russia.
In a post on X on Monday, PM Modi said, “It was wonderful speaking to my dear friend President Trump today. Happy that tariffs on Made in India products will now be reduced to 18%. A big thank you to President Trump on behalf of 1.4 billion people of India for this wonderful announcement.”
Earlier on Tuesday, Commerce and Industry Minister Piyush Goyal said that the India-US trade agreement offers significant opportunities for the country and is the most favorable deal achieved by India compared to its neighbors.
Speaking at a press conference a day after the agreement was announced, Goyal said that India’s interests were given top priority.
According to ANI, he said, “We all know that the Prime Minister, leveraging his friendly relations and close ties with President Trump, has secured a trade agreement with the US, which is the best deal India has ever received compared to all our neighbors, all the neighboring countries, and all the countries that compete with us. This is a fantastic deal for all of us.”
This agreement with the US comes right after India’s historic trade agreement with the European Union, which was signed just a week ago.
India-US Trade Deal Nearing Completion
According to a PTI report, External Affairs Minister S Jaishankar said on Thursday that the “historic” India-US trade agreement has reached the final stages of detailed discussions and will be finalized “very soon” after comprehensive talks with US Secretary of State Marco Rubio. These discussions in Washington D.C. came three days after US President Donald Trump announced, following a phone call with Prime Minister Narendra Modi, that US tariffs on Indian goods would be reduced from 50 percent to 18 percent under a trade agreement. Jaishankar said the agreement was expected to usher in a “new phase” in bilateral relations.
Markets rally on US trade deal hopes, best week in 3 months
Indian shares rose on Friday, marking their best weekly performance in three months, as a long-awaited trade agreement with the United States eased a major source of uncertainty for investors. The gains more than offset losses suffered on budget day and continued global selling in software stocks due to concerns over AI-related disruptions, Reuters reported.
The Nifty 50 closed 0.2 percent higher at 25,693.70, while the BSE Sensex rose 0.32 percent to 83,580.40.
RBI keeps interest rates unchanged
The Reserve Bank of India (RBI) on Friday kept its benchmark interest rate unchanged, as expected, as inflation remained at manageable levels and growth concerns eased following increased government spending in the budget and reduced tariff pressures after the trade agreement with the United States, PTI reported.
The central bank’s six-member Monetary Policy Committee (MPC) unanimously voted to keep the repurchase or repo rate at 5.25 percent. The RBI maintained its neutral policy stance, indicating that it is likely to remain unchanged for the time being.