Finance Minister Nirmala Sitharaman hails tariff reduction amid India-US trade deal: 'Good news for Made in India products'

Nirmala Sitharaman

• US lowers tariff on Indian goods from 25% to 18% in new trade deal
• Finance Minister and PM Modi praise the boost for Made in India products.
• Both leaders say the deal benefits citizens of the two large democracies

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Finance Minister Nirmala Sitaraman on Tuesday hailed the trade deal that has been agreed upon by India and US and said that it would be a "good news for Made in India products".

Taking to X, she wrote, "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."

India-US trade deal

US President Donald Trump on Monday night announced a reduction in reciprocal tariffs on Indian goods to 18 per cent, down from 25 per cent, following a phone conversation with Prime Minister Narendra Modi and what he described as the finalisation of a trade deal between the two countries.

Sharing details of the call on Truth Social, Trump said, “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 percent to 18 percent.”

Soon after Trump’s announcement, Prime Minister Modi also confirmed the development in a post on X. "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," the post said.

The Prime Minister further highlighted the broader significance of the engagement, stating, "When two large economies and the world’s largest democracies work together, it benefits our 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. I look forward to working closely with him to take our partnership to unprecedented heights," it added.