India PM Modi and The United States President Donald Trump announced the Trade deal on Monday evening. Both countries agreed upon on a much-anticipated trade agreement.The negotiations stretched almost around a year.

WHAT THE US PRESIDENT SAID

President Donald Trump claimed that India has agreed to stop buying oil from Russia. He further asserted that India will buy more oil from the United States and potentially Venezuela.The United States agreed to cut tariffs on Indian goods to around 18% from 25%.And the other 25% levied as penalty for India buying Russian oil has been removed.

It will lower costs for Indian exporters and boosting competitiveness in the US market.Markets reacted quickly, with Indian stocks and the rupee rising on optimism about growth and renewed investor confidence.

Currently External Affairs Minister S Jaishankar is on a visit to the United States. He will participate in inaugural ministerial on critical minerals.

India’s Policy Response to U.S. Tariffs and Trade Pressures

In the context of trade frictions arising from tariff actions by the United States, India adopted a calibrated and pragmatic strategy.

1. Strategic Energy Imports from the U.S.

India significantly ramped up crude oil imports from the United States. Especially after sanctions constrained other suppliers (Iran, Venezuela).

2. Long-Term LPG Import Agreements

Indian Public Sector Oil marketing companies entered into one-year contracts for importing American LPG.

3. Opening of the Nuclear Sector

• India opened its nuclear power sector to foreign participation, including U.S. firms.

Last month, Meanwhile, India had also concluded a landmark trade pact with the European Union after nearly two decades of negotiation. This “mother of all deals” will slash tariffs on most goods and expand market access on both sides.

These deals come at a time of major global economic and geopolitical shifts. Countries are realigning trade links amid tensions involving major powers, supply-chain restructuring, and efforts to reduce dependence on any single market. India’s new agreements with the US and EU give it greater strategic leverage. It will diversify its export destinations. It will position it as a central player in global trade and investment flows.

FOR INDO US RELATIONS