Our Bureau
New Delhi
External Affairs Minister S Jaishankar on Tuesday welcomed the India-US trade deal, where Washington reduced the tariffs on India to 18 per cent, saying that 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, EAM Jaishankar hailed the announcement, which came following a conversation between US President Donald Trump and Prime Minister Narendra Modi.
“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. The opportunities in our economic engagement are truly vast and we are confident of realising them. A robust economic relationship is the strongest foundation for our strategic partnership,” the EAM said in a post on X.
The remarks by the EAM come after Trump, earlier in 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. He further stated that the deal will come “effective immediately”.
In his Truth Social post, Trump referred to his conversation with PM Modi earlier in the day, noting that the Prime Minister was one of his closest friends and a powerful, respected leader of India.
The US President also claimed that PM Modi had agreed to “stop buying Russian Oil”, and to buy much more from the US.
Trump further noted that India would reduce tariffs and non-tariff barriers against the US.
Meanwhile, a White House official confirmed that Washington will 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 to “cease, not just reduce, Russian oil purchases.”
When asked whether the tariffs on Indian imports would be lifted in exchange for reducing Russian oil purchases, the official said, “Yes, although the agreement is that India will cease, not just reduce, Russian oil purchases.”
