U.S President Donald Trump says he has agreed on a major trade deal with India that will reshape economic ties between the world’s two largest democracies.
Trump announced the pact on social media following a call with Indian Prime Minister Narendra Modi saying the United States will slash tariffs on Indian goods to 18 per cent from about 50 per cent. In return India has committed to ending its purchases of Russian oil and to lower trade barriers for American products.
The trade agreement also involves cancelling punitive duties that the U.S had imposed on Indian imports over past disputes and could see India increasing purchases of U.S energy technology and other goods. Market reactions were positive with Indian shares rising on the news.
Prime Minister Modi thanked Trump for the tariff cuts saying the move will benefit Indian exports and strengthen economic cooperation. However key details on implementation timing and enforcement mechanisms are still unclear and neither side has released a full text of the deal.
Analysts say the agreement reflects a broader effort to deepen bilateral trade ties and may have implications for global supply chains especially if India shifts its energy sourcing toward the United States. Critics on both sides have also noted uncertainties around long term impacts.
For now both governments portray the deal as a step toward closer economic partnership potentially unlocking new opportunities for exporters and investors on both sides.
