Prime Minister Narendra Modi on Tuesday welcomed the United States’ decision to reduce tariffs on Indian goods, while Nagaland Chief Minister Neiphiu Rio also hailed the move, making a rare public comment on global geopolitics and international trade.
Reacting to U.S. President Donald Trump’s announcement of the tariff reduction, Modi thanked the American leader for lowering duties on Indian goods to 18 per cent.
In a post on X, Modi said, “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.”
The Prime Minister said closer cooperation between India and the United States would unlock opportunities for mutually beneficial cooperation and strengthen bilateral ties.
Nagaland Chief Minister Neiphiu Rio, who is currently in New Delhi, also welcomed the decision, marking an uncommon instance of the Nagaland Chief Minister commenting on international economic policy.
In a post on X, Rio said, “The US’ decision to slash tariffs is a welcome step for India-US economic ties. It will ease pressure on Indian exporters, boost competitiveness, & strengthen the strategic partnership, benefiting both economies.
Appreciate our PM’s role in strengthening bilateral economic ties.”
The reactions follow Trump’s announcement of a broader India-US trade agreement, though official details of the deal have yet to be released by either government.
According to Reuters, Trump said tariffs on Indian imports would be cut to 18 per cent from 50 per cent in exchange for India lowering trade barriers and halting purchases of Russian oil. However, the announcement was not accompanied by a detailed statement from either the White House or the Indian government.
An Indian government official told Reuters that India had agreed to buy petroleum, defence goods and aircraft from the United States, while partly opening up its agriculture sector under the agreement. The official also said New Delhi had lowered tariffs on imported cars to address Washington’s immediate demands. Another Indian official said India agreed to give zero tariffs to industrial goods coming into the country from the US.
India’s Trade Minister Piyush Goyal said late on Tuesday that after a “final understanding” of the deal was signed, the two countries would share details, adding that a joint statement would be issued soon.
Trump, without specifying a time frame, said India would increase purchases of US goods to over $500 billion, including energy, coal, technology and agricultural products. Indian trade officials, however, said India would reach that figure over a five-year period.
Economists and trade bodies have said the tariff cut could help several Indian export sectors. Neelkanth Mishra, chief economist at Axis Bank, said India’s tariff agreement with the U.S. removes its earlier disadvantage compared to peers, adding that the deal would benefit gems and jewellery, leather, plastics, ceramics and auto components, as well as non-technology foreign investment.
SC Ralhan, president of the Federation of Indian Export Organisations, said lower tariffs would improve price competitiveness and help Indian exporters integrate more deeply into US supply chains.
Despite the optimism, several aspects of the agreement remain unresolved. Reuters reported that Indian refiners would require a wind-down period to complete existing Russian oil deals, and that the government has not yet ordered a halt to such imports. The Kremlin, meanwhile, said it had heard no statements from India regarding a stoppage of Russian oil purchases.
Moody’s warned that immediately stopping Russian oil imports could disrupt India’s economic growth, tighten global supply, raise prices and push up inflation, given that India is one of the world’s largest oil importers.
The US Agriculture Secretary Brooke Rollins said the deal would ensure greater exports of American farm products to India’s market, though no details were provided. In the past, India has excluded several sensitive farm and dairy items from trade agreements, citing the need to protect millions of subsistence farmers.
While Prime Minister Narendra Modi and Chief Minister Neiphiu Rio have publicly welcomed the tariff cut, a joint India-US statement outlining the final terms of the agreement is still awaited. (With inputs from Reuters)
