India-US trade deal: Here’s what gets cheaper in India and what will be costlier
The much-anticipated trade deal between India and the United States has been announced. However, this announcement comes after Trump's claim that India will stop buying oil from Russia.
A trade deal has been announced between India(BHARAT) and the United States. US President Doland Trump has claimed that after talks with Prime Minister Narendra Modi, the US has suddenly reduced the 50% tariff on India(BHARAT) to 18%. Delighted with this deal, PM Modi has also thanked Trump. The US claims that this major deal was reached after India(BHARAT) stopped buying oil from Russia. The big question is: will India(BHARAT) have to pay a heavy price for stopping oil from Russia? How much will it cost India(BHARAT) if it buys Venezuelan oil?
After talking to PM Modi on phone, Trump took to Truth Social and wrote, “It was an honour to speak with Prime Minister Modi, of India(BHARAT), this morning. He is one of my greatest friends and, a powerful and respected leader of his country. 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(BHARAT), whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent.”
What might get cheaper
- According to reports, US goods imported into India(BHARAT) could see a decline in retail prices as tariff relief eases entry costs.
- Agricultural goods such as like pulses, dairy, processed foods are likely to benefit from reduced import levies, offering potential price relief to consumers amid rising food inflation.
- Tech hardware and components such as laptops, gadgets, electronics may also become more competitively priced in the India(BHARAT)n market.
- Additionally, processed foods, packaged goods, appliances could see improved affordability as import‑related expenses decrease.
What gets cheaper for India(BHARAT)n exports to the US
- Textiles and apparel
- Gems and jewellery
- Steel, chemicals, engineering goods
What Still Might Be Expensive
- Steel, aluminium and copper
- Auto components
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