How does the India-US trade deal benefit India?

India’s latest trade deal with the United States was announced after a phone call between Prime Minister Narendra Modi and US President Donald Trump. Trump said the two countries had reached a trade understanding and confirmed that tariffs on Indian goods would be reduced to about 18 percent. Modi said the decision would support Indian exporters and strengthen trade ties between the two countries. The reduction follows months of negotiations after the US raised tariffs as part of its reciprocal trade policy. At that time, some Indian exports were facing combined tariffs of close to 50 percent. Other countries, including China, Pakistan and Bangladesh, were also subject to higher US tariffs during this period. Under the new deal, Indian products entering the US become cheaper and more competitive, making it easier for American buyers to choose goods made in India. Sectors such as textiles, gems and jewellery, engineering goods may prosper from lower duties. The agreement also gives India an edge over some competing countries whose exports still face higher US tariffs, helping Indian businesses secure more orders and expand their presence in the US.
Published on
04
/
02
/
2026

How does the India-US trade deal benefit India?

India’s latest trade deal with the United States was announced after a phone call between Prime Minister Narendra Modi and US President Donald Trump. Trump said the two countries had reached a trade understanding and confirmed that tariffs on Indian goods would be reduced to about 18 percent. Modi said the decision would support Indian exporters and strengthen trade ties between the two countries. The reduction follows months of negotiations after the US raised tariffs as part of its reciprocal trade policy. At that time, some Indian exports were facing combined tariffs of close to 50 percent. Other countries, including China, Pakistan and Bangladesh, were also subject to higher US tariffs during this period. Under the new deal, Indian products entering the US become cheaper and more competitive, making it easier for American buyers to choose goods made in India. Sectors such as textiles, gems and jewellery, engineering goods may prosper from lower duties. The agreement also gives India an edge over some competing countries whose exports still face higher US tariffs, helping Indian businesses secure more orders and expand their presence in the US.
Publié le
04
/
02
/
2026

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