The North News
New Delhi, February 2
Prime Minister Narendra Modi took to social media on Monday to welcome a landmark trade agreement with the United States, describing the deal as a major opportunity for Indian industry and a boost to bilateral ties.
In a post on his social media platforms, Modi said it was “wonderful to speak with my dear friend President Trump” and expressed delight that “Made in India products will now have a reduced tariff of 18%”. He offered “big thanks to President Trump on behalf of the 1.4 billion people of India” for the announcement.
The prime minister framed the agreement as a sign of what can be achieved when “two large economies and the world’s largest democracies work together”, saying it would unlock “immense opportunities for mutually beneficial cooperation”.
Modi’s warm remarks signalled a rare moment of public praise for US leadership, with the prime minister adding that “President Trump’s leadership is vital for global peace, stability, and prosperity” and that India “fully supports his efforts for peace”.
The comments followed a statement from US President Donald Trump, who said Washington and New Delhi had reached a new trade agreement that would see the United States reduce its reciprocal tariff on Indian goods from 25% to 18%.
“We agreed to a trade deal between the United States and India,” Trump wrote on social media, adding that the agreement would take effect immediately and represented “a significant step in strengthening bilateral economic ties”.
In his announcement, the US president said India had committed to lower its own tariffs and non-tariff barriers on American goods, with the ultimate aim of reducing them to zero. Trump said the pact would lead to expanded Indian purchases of US energy, technology, agricultural products and coal, with trade flows potentially exceeding $500bn.
Trump also linked the trade deal to wider geopolitical concerns, asserting that in their talks Modi had agreed to cut back purchases of Russian oil in favour of increased US shipments, and possibly imports from Venezuela – a statement that drew scrutiny from analysts given New Delhi’s longstanding diversification strategy.
Describing Modi as a “powerful and respected leader”, Trump said the agreement would further cement ties between the two countries.
There was no immediate response from the Indian government on aspects of the energy trade claims, or on the precise timeframe for tariff reductions.
