New Delhi, February 3: Finance Minister Nirmala Sitharaman on Tuesday welcomed the announcement of the India–United States trade deal under which Washington has reduced tariffs on Indian goods to 18 per cent.
She said the move would benefit Made-in-India products as well as the people of both democracies. In a post on X, Sitharaman wrote, “Good news for Made in India products. They will now face a reduced tariff of 18%.”
“Thanking the leadership of PM @narendramodi and @POTUS for this development. People of our two large democracies stand to benefit,” the post added.
The remarks came after US President Donald Trump said on Monday that the United States and India “have agreed to a trade deal,” with Washington reducing the reciprocal tariff from 25 per cent to 18 per cent “out of friendship and respect” for Prime Minister Narendra Modi.
In a post on Truth Social, Trump referred to his conversation with PM Modi earlier in the day, describing him as one of his closest friends and a powerful and respected leader of India.
The US President also claimed that PM Modi had agreed to stop buying Russian oil and to increase purchases from the United States. He further said that India would reduce tariffs and non-tariff barriers against the US.
“It was an honor to speak with Prime Minister Modi of India this morning. We spoke about many things, including trade and ending the war between Russia and Ukraine. Out of friendship and respect for Prime Minister Modi, we agreed to a trade deal whereby the United States will charge a reduced reciprocal tariff, lowering it from 25% to 18%,” Trump wrote.
Following Trump’s statement, Prime Minister Modi said on X that it was wonderful to speak with his “dear friend President Trump” and welcomed the tariff reduction for Indian goods.
“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 announcement,” PM Modi wrote.
Meanwhile, a White House official told ANI that Washington would also drop the additional 25 per cent tariff on Indian imports imposed over New Delhi’s purchase of Russian oil, noting that India would need to cease, not just reduce, such purchases. (Agencies)
