New Delhi [India], February 3 (ANI): External Affairs Minister S Jaishankar on Tuesday welcomed the India–US trade deal under which Washington reduced tariffs on Indian goods to 18 per cent, saying the agreement will boost job creation, spur economic growth, promote innovation, and strengthen India’s flagship ‘Make in India’ initiative.
In a post on X, Jaishankar hailed the announcement following a conversation between Prime Minister Narendra Modi and US President Donald Trump. “Welcome the announcements on bilateral trade following the conversation between PM Narendra Modi and President Donald Trump. This will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavours and encourage trusted technology ties,” he said, adding that a robust economic relationship is the strongest foundation for the India–US strategic partnership.
The EAM’s remarks came after President Trump earlier on Monday said that the US 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 PM Modi. Trump said the deal would take effect immediately.
In a post on Truth Social, Trump referred to his conversation with PM Modi, describing him as one of his closest friends and a powerful, respected leader of India. He also claimed that PM Modi had agreed to stop buying Russian oil and to increase purchases from the US, and potentially Venezuela.
Trump further said that India would move forward to reduce tariffs and non-tariff barriers against the US. “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% to 18%,” he said.
The US President also stated that PM Modi committed to “Buy American” at a much higher level, including purchases worth over USD 500 billion across US energy, technology, agriculture, coal, and other products, adding that the bilateral relationship would grow even stronger.
Following Trump’s post, Prime Minister Narendra Modi said on X that it was wonderful to speak with his “dear friend President Trump” and expressed delight that “Made in India products will now have a reduced tariff of 18 per cent.” He thanked Trump on behalf of the 1.4 billion people of India for the announcement.
Meanwhile, a White House official confirmed to ANI that Washington would also drop the additional 25 per cent tariff on Indian imports imposed due to New Delhi’s purchase of Russian oil, noting that India has agreed to cease, not just reduce, Russian oil purchases. (ANI)
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