India-US Trade Deal Includes Energy and Investment Terms
The United States and India have announced a new trade agreement that includes commitments on tariffs, energy supplies and large-scale economic cooperation, following high-level discussions between US and Indian leaders.
Trade and Tariff Changes
Under the agreement, the United States has agreed to reduce its tariff on Indian goods to about 18 per cent, down from previous levels, while India will cut tariffs and trade barriers on US products. The deal aims to expand bilateral commerce across multiple sectors.
Energy Commitments and Investment Plans
US officials stated that India will diversify its energy imports and increase purchases of US petroleum and other energy products. Washington also highlighted that India has pledged to make substantial investment and purchase commitments valued in the hundreds of billions of dollars in American goods spanning energy, transportation, agriculture and technology. However, Indian authorities have not formally confirmed a complete halt to Russian oil purchases as part of the deal, and Russian officials say they have received no official notice about ending crude supplies from India.
Context and Outlook
The pact follows a period of tariff disputes and efforts to recalibrate economic ties between the two countries. While both sides emphasise the mutual benefits of enhanced trade, analysts note that details on timelines, energy sourcing and investment plans are still emerging.
