US-India Trade Deal Finalised After Modi-Trump Call: Key Outcomes
India and the United States have finalised a major trade agreement following a phone call between Prime Minister Narendra Modi and US President Donald Trump. The deal, set to be signed by the end of February, marks a significant reset in bilateral economic relations.
Key Takeaways
- US to cut tariffs on Indian steel and aluminium by 18%.
- India to reduce duties on US apples, almonds, walnuts, and allow imports of poultry and premium fruits.
- India gains market access for textiles, engineering goods, leather, and generic medicines.
- Strategic US support for India’s UNSC permanent seat, NSG membership, and APEC bid.
Trade Concessions and Market Access
Washington will slash tariffs on Indian steel and aluminium imports by 18 per cent. In return, India will lower duties on American agricultural products including apples, almonds, and walnuts. India will also permit imports of US chicken legs, turkey, duck, blueberries, and cherries.
Indian exports of textiles, engineering goods, leather, and some generic medicines will gain easier access to the US market.
Major Investments and Energy Deals
The agreement includes substantial energy and aviation purchases. India will buy crude oil and liquefied natural gas (LNG) from the US worth $10 billion. The country will also purchase passenger and transport aircraft.
US companies will be allowed to invest in India’s insurance and dairy sectors, opening new avenues for foreign direct investment.
Strategic and Diplomatic Gains
Beyond commerce, the deal delivers crucial diplomatic backing for New Delhi. The United States has pledged support for:
- India’s bid for a permanent seat in the United Nations Security Council (UNSC).
- India’s membership in the Nuclear Suppliers Group (NSG).
- India’s entry into the Asia-Pacific Economic Cooperation (APEC) forum.
Benefits for Indian Students
A significant win for Indian students in the US is the extension of post-study work opportunities. They will now be allowed to stay in the country for up to three years after completing their degrees, enhancing career prospects.
The finalisation of this wide-ranging deal, following the Modi-Trump conversation, underscores a deepening strategic partnership between the two democracies.
