In a major boost for bilateral trade, India and the United States have struck a reciprocal tariff reduction agreement that promises to slash prices on a wide array of imported goods. From high-tech gadgets to essential food items, consumers in India could soon enjoy more affordable options.
The deal targets technology hardware like laptops, smartphones, and consumer electronics, along with their components. Reports indicate that lower import duties will directly translate to reduced retail prices for these in-demand products. Home appliances and packaged goods are also on the list, potentially easing household budgets amid rising costs.
Agricultural products stand to benefit significantly too. Pulses, dairy items, and processed foods could see tariff cuts, offering relief from food inflation pressures. While official details from the government are pending, early indications suggest a broad impact across sectors.
This agreement reshapes trade dynamics between the world’s two largest democracies. India’s textile and ready-made garments industry may gain from US tariff reductions, opening new export avenues. The gems and jewelry sector, a key export earner, could thrive with easier market access.
Industrial goods like steel and chemicals might find smoother entry into American markets, though experts caution that duties on steel, aluminum, and copper could hover around 50%. Automobile parts may still face higher tariffs, limiting gains in that area.
The breakthrough follows a telephonic conversation between Prime Minister Narendra Modi and President Donald Trump. The US has lowered tariffs on Indian goods to 18%, while India has eased barriers on American products. Discussions reportedly included India’s plans to reduce Russian oil purchases and ramp up imports from the US and possibly Venezuela.
PM Modi celebrated the news on social media, thanking President Trump for the ‘Made in India’ tariff cut to 18%. This move is poised to benefit 1.4 billion Indians, fostering stronger economic ties and promising a brighter future for cross-border commerce.