Union Commerce and Industry Minister Piyush Goyal on Tuesday described India’s newly announced trade agreement with the United States as the “best deal in the neighbourhood”, highlighting the relatively lower tariff rates secured by New Delhi compared to other competing economies. The agreement comes after months of negotiations and several reported hurdles between the two sides.
The trade deal was announced on Monday, first by US President Donald Trump and later confirmed by Prime Minister Narendra Modi, who thanked the American leader for the agreement. While the detailed terms of the deal are yet to be made public, the announcement has drawn attention due to the tariff concessions reportedly offered to India by Washington.
In a post on his social media platform Truth Social, President Trump said that India and the United States had “agreed to a trade deal” under which the US would reduce reciprocal tariffs on Indian goods from 25 per cent to 18 per cent. If implemented as stated, this reduction would place India among the countries facing the lowest US tariffs in the region.
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Goyal underlined that the proposed 18 per cent tariff is significantly lower than what several other economies are facing, including India’s neighbours such as China and Pakistan. He said this reflects India’s growing importance as a trusted trade partner and the outcome of sustained diplomatic and economic engagement with the United States.
The minister also indicated that negotiations had involved complex issues and required patience from both sides. According to officials, the talks covered a range of sectors, though specific details regarding market access, sectoral benefits, or timelines for implementation have not yet been disclosed.
The India–US trade relationship has expanded steadily over the past decade, with bilateral trade crossing significant milestones. The newly announced agreement is expected to further strengthen economic ties once the full text is released and assessed by stakeholders in both countries.
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