US Tariff Cut to 18% Boosts India's Exports: FM Sitharaman

• Finance Minister Nirmala Sitharaman announced that the US decision to cut tariffs on Indian goods to 18% will significantly boost India's exports.
• The previous 50% tariffs imposed by the US had negatively impacted Indian exports, particularly in sectors like steel, aluminium, textiles, and engineering goods.
• The new agreement also involves India lowering its trade barriers and potentially shifting from Russian oil purchases to US and Venezuelan oil.
• This tariff reduction brings India's tariffs in line with other Asian countries and restores its price advantage over competitors like Vietnam and Bangladesh.
• The move offers relief to labor-intensive export sectors such as apparel, footwear, and jewelry, which were severely affected by earlier high tariffs.

Why It Matters: US tariff reduction to 18% is expected to significantly boost India's exports and restore competitiveness.