Finance Minister Nirmala Sitharaman
Credit: PTI PHoto
New Delhi: Finance Minister Nirmala Sitharaman on Tuesday welcomed the reduction in United States' tariffs on Indian goods, describing the development as a major boost for the ‘Made in India’ initiative. Taking to social media platform X, the finance minister said that Indian products would now face a reduced reciprocal tariff of 18 per cent.
"Good news for #MadeInIndia products. They will now face reduced tariff of 18%. Thanking the leadership of PM @narendramodi and @POTUS for this development. People of our two large democracies stand to benefit," she said in a post on X.
The breakthrough follows a high-level telephonic conversation between Prime Minister Narendra Modi and US President Donald Trump.
In a reciprocal move, India has committed to reducing trade barriers for American goods and significantly increasing imports across sectors, including energy, technology, and agriculture.
Following the trade agreement announcement, Prime Minister Narendra Modi said he was delighted that "Made in India products will now have a reduced tariff of 18 per cent".
"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," Modi said.
He said when two large economies and the world's largest democracies work together, it benefits the people and "unlocks immense opportunities for mutually beneficial cooperation".
"President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace," Modi said on 'X'.
President Trump said India will move forward to reduce "tariffs and non tariff barriers" against the US to zero, adding New Delhi would buy American goods, including energy, worth more than USD 500 billion.
"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 per cent to 18 per cent," the US president said on social media.
India will "likewise move forward to reduce their tariffs and non tariff barriers against the United States, to zero", he said.
Trump said Modi also committed to buy American goods at a much higher level, in addition to over USD 500 billion dollars of US energy, technology, agricultural, coal, and many other products.