India-US Trade Deal Finalized: Tariffs Slashed to 18% from 50%

• India and the US have finalized a trade deal, reducing tariffs on Indian products from 50% to 18%.
• The previous 50% tariff included a 25% punitive levy due to India's purchase of Russian oil.
• Prime Minister Modi agreed to purchase oil from the US and Venezuela, leading to the removal of the punitive duty and a tariff reduction.
• The new 18% tariff gives India a competitive edge over Asian rivals like Vietnam, Bangladesh, and Sri Lanka (20% tariff), and Pakistan, Indonesia, Malaysia, and Thailand (19% tariff).
• India has also committed to gradually reducing its tariff and non-tariff barriers on US products, fostering 'Made in India' demand and foreign investment.

Why It Matters: India-US trade deal slashes tariffs to 18%, boosting Indian exports and global competitiveness.