US Lowers India Tariffs to 18% | Big Boost for Make in India | Current Affairs | Drishti IAS

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The United States has agreed to significantly reduce tariffs on Indian goods from 50% to 18%, marking a major breakthrough in India–US trade relations after months of tariff-driven tensions. The decision came following a telephone conversation between US President Donald Trump and Prime Minister Narendra Modi, during which both leaders discussed trade, global security, and the ongoing Russia–Ukraine conflict. Earlier, Washington had imposed a 25% tariff on Indian imports under its “Liberation Day” measures and an additional 25% duty linked to India’s purchase of Russian oil, making India one of the most heavily tariffed countries. Announcing the development, President Trump described it as a trade deal that would strengthen bilateral economic ties, while Prime Minister Modi welcomed the move, saying it would provide a major boost to the Make in India initiative. The tariff cut is expected to benefit Indian exporters, improve market access for Made in India products, and open new opportunities for mutually beneficial cooperation between the world’s two largest democracies.
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