India-US trade agreement to give new momentum to economy: BJP president Nitin Nabin

Nitin Nabin

• US lowers tariff on Indian goods to 18% from 25% in new trade deal
• India to cut tariffs on US goods, buy over $500B in energy
• Deal boosts India's economy, supports Aatmanirbhar Bharat and Make in India.

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Hailing the India-US trade agreement, BJP national president Nitin Nabin said the announcement would provide new momentum to the Indian economy and give new impetus to the country's goal of attaining a developed status.

Nabin's remark came soon after US President Donald Trump spoke with Prime Minister Narendra Modi and announced that India and the US have agreed on a trade deal.

Under the agreed deal, Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent. 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.

The initial 50 per cent US levy (in force until yesterday's announcement) included a 25 per cent reciprocal tariff and an additional 25 per cent import duty imposed over India's purchase of Russian crude oil. With the new deal, Washington has removed the extra penalty and lowered the overall rate.

Taking to X, Nabin said, "This new progress in India-US relations is commendable. The strengthening of relations between India and the United States, two of the world's most powerful democracies, will have a very positive and far-reaching impact." "This decision will provide new momentum to the progress of the Indian economy. It will also give new energy to the Aatmanirbhar Bharat and Make in India initiatives," he said.

"Congratulations to the prime minister. Under his able leadership, new opportunities are opening up for the youth of India," the BJP chief added.

Commenting on the agreement, Prime Minister 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

The prime minister said that when two large economies and the world's largest democracies work together, it benefits the people and "unlocks immense opportunities for mutually beneficial cooperation".