New Delhi | India and the US agreed on a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.
The prime minister said he was delighted that "made in India products will now have a reduced tariff of 18 per cent".
"Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," Modi said on 'X' without mentioning the trade deal.
Trump claimed India will move forward to reduce its "tariffs and non tariff barriers" against the US to zero.
"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, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25 per cent to 18 per cent," the US president said on social media.
India will "likewise move forward to reduce their tariffs and non tariff barriers against the United States, to zero".
Trump said Modi also committed to "buy American" at a much higher level, in addition to over USD 500 billion dollars of US energy, technology, agricultural, coal, and many other products.
"Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done something that cannot be said for most," he said.
In his remarks, Modi said, "When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation."
"President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace," he said.
"I look forward to working closely with him to take our partnership to unprecedented heights," he added.
Trump said Modi and he also discussed ending the war between Russia and Ukraine.
"He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," the US president said.
"This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week," Trump said.
New Delhi | The Congress took a swipe at the Narendra Modi government on Monday after President Donald Trump announced that the US and India have agreed to a trade deal, saying it appears the prime minister has "capitulated finally" and that this "cannot be the father of all deals".
India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent, Trump said on Monday after a phone conversation with PM Modi.
On his part, PM Modi said he was delighted that "made in India products will now have a reduced tariff of 18 per cent".
This came after India and the European Union, on January 27, sealed a landmark free trade agreement -- billed as the "mother of all deals" -- to create a market of two billion people, with PM Modi and the top EU leadership unveiling a transformative five-year agenda to largely leverage trade and defence in protecting the rules-based world order.
Reacting to Monday's developments, Congress general secretary in charge of communications Jairam Ramesh said that in Washington, "clearly Mogambo Khush Hai", a play on a popular dialogue from the 1987 Hindi movie Mr India.
"He (Trump) announced the halt of Operation Sindoor from Washington DC. He announced the updates on India's oil purchases from Russia and Venezuela from Washington. He's now announced an India-US Trade Deal from Washington, the full details of which are awaited," Ramesh said in a post on X.
"President Trump clearly seems to have some leverage over Prime Minister Modi -- who is now mortified of even being seen with him, let alone engaging in the usual bout of hugs. It appears Mr Modi has capitulated finally. Surely this cannot be the father of all deals," he said.
Earlier, the Congress took a swipe at the government after the US ambassador to New Delhi confirmed that President Trump has spoken with Prime Minister Modi, saying it now seems to be a routine that India gets to know of its government's actions only from Trump or his appointees.
In a social media post, US Ambassador Segio Gor said Trump spoke with Modi on Monday. "President Trump just spoke with Prime Minister Modi. STAY TUNED," Gor said in the post.
Reacting to the development, Ramesh said, "It seems that Prime Minister Modi and President Trump spoke to each other today. This information has been provided not by the Indian side but by the US Ambassador to India.
"This now seems to be the routine -- India gets to know of its government's actions only from President Trump or his appointees. Trump-nirbharta," the Congress leader said on X.