03 February,2026 02:46 PM IST | Mumbai | mid-day online correspondent
The India–US trade deal follows a phone call between Prime Minister Narendra Modi and US President Donald Trump. File pic
India's trade agreement with the United States (US), under which tariffs on Indian goods have been reduced to 18 per cent, is expected to make a range of products - from tech hardware to certain agricultural imports - more affordable.
India-US trade deal: Tech and household goods to benefit
Under the deal, laptops, gadgets, consumer electronics, processed foods, packaged goods and household appliances may become more competitively priced.
Agricultural products such as pulses, dairy and processed foods could also see reduced import levies, potentially easing pressure from rising food inflation, news agency IANS reported, adding that official details on the full terms of the deal are awaited.
The agreement could benefit key export sectors such as textiles and apparel, gems and jewellery, as well as industrial and engineering goods including steel and chemicals. Analysts note, however, that some products, including steel, aluminium and copper, may continue to face duties of around 50 per cent, IANS reported. Certain auto components may also remain subject to significant tariffs.
The India-US trade deal follows a phone call between Prime Minister Narendra Modi and US President Donald Trump. The agreement reportedly also includes India's commitment to reduce purchases of Russian oil while increasing imports from the United States and potentially Venezuela.
PM Modi welcomed the tariff reduction on social media platform X, saying: "Wonderful to speak with my dear friend President Trump today. 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."
Leading industry bodies said the deal would enhance the global competitiveness of Indian products, boost manufacturing growth, create jobs and strengthen supply chains.
"The expected reduction of US-India tariffs to 18 per cent marks a significant step forward in the strategic economic partnership between India and the US," said Rajiv Memani, President of the Confederation of Indian Industry (CII).
Rajeev Juneja, President of the PHD Chamber of Commerce and Industry (PHDCCI), added: "Reduced tariffs cut input costs for domestic industries, strengthen supply chains, and ease inflation by lowering prices for businesses and consumers. They benefit key sectors - including manufacturing, technology, healthcare, and renewable energy - by improving access to intermediate goods, capital equipment, and critical components."
(With IANS inputs)
