India and the United States have advanced their bilateral trade relations with a landmark agreement that promises substantial benefits for Indian exports. The Ministry of External Affairs (MEA) spokesperson, Randhir Jaiswal, highlighted that this deal will significantly enhance exports to the US, particularly in labour-intensive sectors.

The agreement stems from high-level discussions, including a recent telephone conversation between Prime Minister Narendra Modi and US President Donald Trump. Jaiswal emphasised that the reduced tariff structure will invigorate industries such as textiles, footwear, leather goods, and select manufacturing segments.

"This trade agreement will give a major boost to our exports to the United States," Jaiswal stated. "It will be a major boost to the labour-intensive industries here in India, create new job opportunities, growth and prosperity for our people."

Clarity on tariff figures emerged from these talks, with the US confirming a final reciprocal tariff of 18 per cent on Indian goods, down from 25 per cent. This adjustment addresses previous ambiguities and paves the way for smoother market access.

Commerce Minister Piyush Goyal provided further insights, noting no specific investment commitments from India but acknowledging future sourcing needs. As India pursues its Viksit Bharat 2047 vision, it anticipates requiring vast quantities of energy, data centre equipment, ICT products, and steel to support doubled production capacity from 140 million tonnes to 300 million tonnes.

President Trump announced the deal on Truth Social, praising his conversation with Modi. He described Modi as a "powerful and respected leader" and outlined key terms: the US reducing tariffs to 18 per cent, India moving towards zero tariffs and non-tariff barriers, and commitments to "Buy American" with over $500 billion in US energy, technology, agriculture, coal, and other products.

Trump linked the agreement to broader geopolitical aims, including ending the Russia-Ukraine war. He claimed Modi agreed to halt Russian oil purchases in favour of US and potentially Venezuelan supplies, framing this as a step towards peace amid ongoing casualties.

Prime Minister Modi responded positively on X, thanking Trump for the 18 per cent tariff reduction on Made in India products. He hailed the partnership between the world's largest democracies as a driver of mutual prosperity and affirmed India's support for Trump's peace initiatives.

Jaiswal confirmed the PM's appreciation post-call, reiterating that Indian exports will now enter the US market at the lowered 18 per cent tariff. He directed further queries to Goyal's recent statements for comprehensive details.

This development marks a pivotal moment in India-US economic ties, fostering job creation and industrial growth in India while aligning with strategic sourcing goals. As negotiations progress, both nations anticipate deeper cooperation across sectors.

Based On ANI Report