Prime Minister Narendra Modi expressed his delight on Monday following the announcement of a significant India–United States trade agreement by US President Donald Trump. The landmark deal, which was finalized after months of negotiations, will see tariffs on Indian exports to the United States reduced from 25% to 18%, with the revised rate taking immediate effect.
Positive Step in Bilateral Relations
PM Modi's response came shortly after President Trump revealed the agreement on his social media platform, Truth Social. In a detailed post on X, the Prime Minister shared insights from his phone conversation with Trump, describing it as a wonderful discussion that marks a positive step forward in strengthening bilateral ties between the two nations.
PM Modi's Statement on Social Media
"Wonderful to speak with my dear friend President Trump today," PM Modi wrote. "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."
The Prime Minister emphasized that closer cooperation between India and the US, as the world's two largest democracies, would bring substantial benefits to people in both countries. He highlighted the immense opportunities for mutually beneficial cooperation when two large economies collaborate effectively.
Broader Implications and Global Leadership
In his social media post, PM Modi also praised President Trump's leadership on global issues, linking the trade breakthrough to broader international stability. "President Trump's leadership is vital for global peace, stability, and prosperity," the Prime Minister stated. "India fully supports his efforts for peace."
PM Modi added that he looks forward to working closely with Trump to elevate the India-US partnership to unprecedented heights, signaling a strong commitment to deepening bilateral engagement across multiple domains.
Trump's Announcement and Additional Details
Earlier in the day, President Trump announced the trade deal, attributing it to his conversation with PM Modi and describing it as a result of "friendship and respect" between the two leaders. In his Truth Social post, Trump revealed that while the US would reduce its tariff on Indian goods to 18%, India would reciprocate by cutting its tariffs and non-tariff barriers on American products to zero.
Furthermore, Trump claimed that India had committed to purchasing over $500 billion worth of US energy, technology, agricultural, and other products. He also mentioned discussions about ending the war between Russia and Ukraine, noting that PM Modi agreed to stop buying Russian oil and increase purchases from the United States and potentially Venezuela.
Context of India's Trade Strategy
This India-US trade agreement arrives amid a broader reset of India's international trade relationships. Just days before this announcement, India and the European Union revealed what both sides termed the "mother of all" trade deals. While the EU bloc stands as India's largest trading partner collectively, the United States remains India's single largest trading partner on an individual country basis.
Simultaneously, India has reiterated its commitment to protecting sensitive sectors such as agriculture and dairy even as it deepens trade engagement with global partners. New Delhi has also underlined its policy of strategic autonomy, particularly in managing energy imports, as global economic and geopolitical pressures continue to evolve.
The trade deal represents a significant milestone in India-US economic relations, potentially unlocking new avenues for trade and cooperation while addressing long-standing tariff disputes that have characterized bilateral trade discussions in recent years.
