India Secures Lower Tariffs Than Peers, Boosting Export Advantage

• India's tariff rate reduced to 18% after a trade deal with the US, down from 50%.
• This new rate is lower than or equal to most South and Southeast Asian economies like Pakistan (19%), Bangladesh (20%), and Vietnam (20%).
• The reduced tariff provides Indian exporters a relative cost advantage in global markets.
• Prime Minister Narendra Modi and US President Donald Trump announced the deal, with Trump noting India's agreement to reduce tariffs and non-tariff barriers to zero for the US.
• Globally, India's 18% tariff compares favorably against major exporters like Brazil (50%), South Africa (30%), and even developed economies like Canada (35%).

Why It Matters: India's new 18% tariff rate offers a significant competitive edge for its exports globally.