India invests $500 billion as part of US trade agreement lowering tariffs
The United States and india unveiled an interim trade framework in which India would invest about $500 billion in American industries over the next five years, and both countries would reduce tariffs across a wide range of goods. The framework, announced by President Donald Trump, reinforces ongoing bilateral negotiations begun in February 2025 and outlines mutual tariff reductions and increased market access.
Key elements:
– India will invest in U.S. energy products, aircraft materials, precious metals, technology products, and coking coal, and will expand joint technology cooperation, including GPUs and data-centre-related goods.
– India will eliminate or reduce tariffs on a broad list of U.S. industrial and agricultural products (e.g., tree nuts, soybean oil, spirits), while the U.S. will cut reciprocal tariffs on many Indian goods (from 50% to 18%), with additional tariff removals planned as full implementation progresses.
– The agreement includes preferential market access, cooperation on non-tariff barriers, and commitments to strengthen economic security and supply-chain resilience.
– It is aimed at mending strained trade relations after past tariff actions, with expectations of greater access for Indian exporters and new opportunities for American producers.
– Market reactions were positive, including a surge in Indian markets on the announcement. The deal is also framed as affecting broader geopolitics by reducing dependence on China and, reportedly, aligning India to halt certain Russian oil purchases as part of the framework.
India invests $500 billion as part of US trade agreement lowering tariffs
President Donald Trump announced on Friday the framework of a trade agreement between the United States and India, under which New Delhi will invest $500 billion in American industries over the next five years, and both parties will reduce tariffs.
In a joint statement, the countries’ leaders said the agreement reaffirms the commitment to ongoing Bilateral Trade Agreement negotiations launched in February 2025 and outlines mutual tariff reductions and increased market access across a wide range of goods.
India will invest in U.S. energy products, aircraft materials, precious metals, technology products, and coking coal over the next 5 years. Both nations will increase trade in technology products, such as graphics processing units and other goods used in data centers, and will expand joint technology cooperation.
Under the interim framework, India will also eliminate or reduce tariffs on a broad list of U.S. industrial and agricultural products, including tree nuts, soybean oil, and spirits.
In return, the U.S. will reduce the reciprocal tariff rate from 50% to 18% on many Indian goods, including textiles, leather, machinery, and other products, with plans to remove tariffs on certain items pending full implementation of the agreement.
The statement also includes provisions for preferential market access, cooperation on non-tariff barriers, and commitments to strengthen alignment on economic security and supply chain resilience.
The announcement comes after months of strained trade relations. Last year, the U.S. imposed high tariffs on Indian imports, which sparked disputes that eroded trust and slowed cooperation on other fronts.
The new interim agreement is seen as an effort to mend those tensions by offering Indian exporters greater access to U.S. markets while opening new opportunities for American producers.
TRUMP’S PRAISEWORTHY INDIA TRADE DEAL
When the agreement was announced earlier this week, Indian markets surged, marking their best day since May 2025.
In addition to improving relations with India, the deal also weakens China’s economy, as India has relied heavily on Chinese exports. In another hit to U.S. foes, India also agreed to halt Russian oil purchases.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
