
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.
Just days after the India-EU trade deal, the leaders of the United States and India, in a phone call, reached a framework for an interim agreement on reciprocal trade and reaffirmed their commitment to broader US-India Bilateral Trade Agreement (BTA) negotiations. President Trump announced the deal, saying New Delhi agreed to stop buying Russian oil and may purchase it instead...
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