US - India Trade Deal

Summary. Quick on the heels of the conclusion of India's long-drawn-out trade negotiations with the EU, the US and India have announced a trade deal that will open up the latter's market of over 1.4 billion people to American products. The interim trade agreement immediately removes the punitive 25% tariff on Indian goods, envisages reduction of US reciprocal tariffs on Indian goods from 25% to 18% and commits India to tariff cuts on US industrial and agricultural products, alongside a $500 billion purchase commitment from the US over the next five years. The marks a significant shift in the global trade landscape, with implications that extend well beyond the two countries.