US President Donald Trump shared information about a trade agreement after a phone conversation with Prime Minister Narendra Modi. Trump said that America and India have agreed on a trade deal. He also announced an 18 percent reduction in tariffs on Indian goods. This decision is being seen as a major diplomatic achievement in the relations between the two countries.
Modi thanked Trump
After the deal, Prime Minister Narendra Modi also thanked President Trump. Meanwhile, the US says that the agreement was possible when India decided to stop buying oil from Russia.
What can be cheaper in India?
After this agreement, a reduction in the retail prices of imported American goods in India can be expected. Prices of dairy products, pulses and packed food items may fall. Apart from this, prices of technological hardware and components like laptops, gadgets and electronics may also go down. Additionally, lower import costs could lower prices of consumer products such as processed foods, packaged goods and home appliances.
Will Indian products be cheaper in America?
Many sectors of India can directly benefit from the reduction in tariff. In the textile and clothing industry, landing costs of goods in the US will reduce, making Indian products more competitive and exporters getting better market access. Jewelery export will also get a boost, as Indian products will become more affordable and attractive in the global market. Additionally, industrial sectors such as steel, chemicals and engineering goods will also benefit from lower trade barriers and easier market access, leading to a potential increase in exports.