Bhubaneswar: India and the United States have reached a major trade agreement that ends a 25 per cent U.S. tariff linked to India’s purchases of Russian oil and immediately reduces a reciprocal tariff to 18 per cent, providing significant relief to Indian exporters.
Under the deal, India has agreed to substantially lower trade barriers on U.S. goods, bringing tariffs on several categories close to zero. New Delhi will also increase imports of American energy, technology products, and agricultural commodities, strengthening bilateral trade ties.
Prime Minister Narendra Modi thanked U.S. President Donald Trump for the agreement, saying it was reached in the interest of India’s 1.4 billion citizens. Senior Indian officials described the deal as a boost to manufacturing, exports, and employment, particularly in sectors linked to global supply chains.
Financial markets reacted sharply to the announcement, with the Sensex surging more than 2,200 points, reflecting investor optimism over improved trade access and reduced geopolitical risk. The rupee and broader equity indices also registered gains.
However, the agreement has drawn mixed reactions. While industry groups welcomed the removal of punitive tariffs and greater market certainty, some critics argued that the deal is uneven, warning that steep tariff reductions could expose domestic producers to increased competition without adequate safeguards.
The trade pact marks a significant reset in India–US economic relations, coming amid shifting global energy dynamics and ongoing efforts by both countries to recalibrate supply chains and strategic partnerships.
-OdishaAge
