New Delhi: India and the US achieved a major diplomatic breakthrough after months of tension and tough talk as they reached a trade deal, with US President Donald Trump slashing tariffs to 18%, from 25%, following a phone call with Prime Minister Narendra Modi late on Monday. The additional penal levy of 25% that had been imposed on India for buying Russian oil has also being dropped. Trump said Modi had agreed to stop buying Russian oil.The announcement signalled a thaw in India-US ties, which had been marred by tariffs imposed by Trump. The US is India's top export destination, accounting for 20% of the merchandise leaving her shores. 127874376 127874380New Delhi and Washington had been working on a bilateral trade agreement (BTA) since February last year, eyeing $500 billion in trade by 2030, from the current $191 billion. The US is India's largest trading partner, with bilateral trade valued at $131.84 billion.Also read: India-US trade deal "biggest victory" in ties in nearly a year, analyst saysTogether with the free trade agreement with the EU, concluded days ago, India now has robust agreements with two of the biggest trading blocs in the world-a first in the nation's economic history.The news is expected to spark a surge in Indian stocks on Tuesday and reverse the ongoing slide in the rupee. Textile, apparel and seafood exporters rejoiced immediately, and said they were looking forward to a revival in their exports to the US. 127874385 127874388India has now reached five trade deals in the past 12 months, the other pacts being with the UK, the European Union, Oman and New Zealand. "Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%," Trump posted on Truth Social on Monday night India time. "They will likewise move forward to reduce their Tariffs and Non-Tariff Barriers against the United States, to ZERO." 127874392Also read: Trump "must move rapidly" to strengthen India ties after trade deal, US lawmaker saysResponding to Trump's post, Modi thanked the US President. "Wonderful to speak with my dear friend President Trump today," Modi wrote on X following the call. "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. When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation."The Indian side didn't refer to potus' mention of the PM's commitment on Russian oil imports and purchase of US products. "We spoke about many things, including Trade, and ending the War with Russia and Ukraine," Trump had posted. "He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.
- News Source Indiatimes (Click to view full news): CLICK HERE
0 Comments:
Leave a Reply