Finance Minister Sitharaman welcomed the US decision to lower reciprocal tariffs on Indian goods to 18 per cent.
She called it a major positive for the ‘Made in India’ initiative.
Trump said India would cut tariffs and non-tariff barriers for US goods to zero.
Finance Minister Nirmala Sitharaman on Tuesday welcomed the reduction in US tariffs on Indian goods, calling it a significant boost for the ‘Made in India’ initiative. In a post on social media platform X, Sitharaman said Indian products would now be subject to a reduced reciprocal tariff of 18 per cent.
“Good news for #MadeInIndia products. They will now face reduced tariff of 18%. Thanking the leadership of PM @narendramodi and @POTUS for this development. People of our two large democracies stand to benefit,” she said on X.
As part of the agreement, India has committed to lowering trade barriers for American goods and substantially increasing imports across several sectors, including energy, technology and agriculture.
Following the announcement, Modi said he was pleased that “Made in India products will now have a reduced tariff of 18 per cent”.
“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said.
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He added that cooperation between two large economies and the world’s biggest democracies benefits their people and “unlocks immense opportunities for mutually beneficial cooperation”.
“President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace,” Modi said on X.
Trump said India would move to reduce “tariffs and non tariff barriers” against the US to zero, and that New Delhi would significantly increase purchases of American goods, including energy, amounting to more than USD 500 billion.
“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25 per cent to 18 per cent,” Trump said on social media.
India will “likewise move forward to reduce their tariffs and non tariff barriers against the United States, to zero”, he added.
Trump further said Modi had committed to buying American goods at much higher levels, in addition to more than USD 500 billion worth of US energy, technology, agricultural products, coal and other commodities.
