India and the United States have signed a landmark trade deal, with Washington reducing tariffs on Indian goods from 25 per cent to 18 per cent. The announcement drew attention across political and economic circles, including a comment from Sanjeev Sanyal, member of Prime Minister Narendra Modi’s Economic Advisory Council. In a post on X, Sanyal wrote, “Duniya jhukti hai, jhukaney wala chahiye,” meaning “The world bends, but one must be willing to bend.”
The reduced tariff rate positions Indian exports ahead of regional peers. Indonesia now faces tariffs of 19 per cent, Bangladesh and Vietnam at 20 per cent, and China at 34 per cent. Even Pakistan’s rate stands at 19 per cent, giving India a clear advantage in global markets.
Trump Frames Deal as Friendship and Strategic Move
US President Donald Trump, in a post on Truth Social, highlighted his close rapport with PM Modi and the broader context of the agreement.
“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! 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%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” Trump wrote.
Modi on “Win-Win” Deal
Prime Minister Modi welcomed the move, saying, “Wonderful to speak with my dear friend President Trump today. 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 wonderful announcement,” on X.