Mumbai, Feb 3 India’s agreement with the United States to cut reciprocal tariffs is set to make a range of products -- from tech hardware to select agricultural imports -- cheaper in the country.
Tech hardware and components, including laptops, gadgets and consumer electronics, may become more competitively priced, while processed foods, packaged goods and household appliances could also benefit from lower import expenses, according to reports.
Agricultural products such as pulses, dairy and processed foods could see reduced import levies, easing some pressure from rising food inflation, reports said. However, official details regarding the terms and conditions of the deal from the government are awaited.
India-US trade paves way for reshaping trade flows between the world’s two largest democracies, and Indian sectors such as textiles and apparel may benefit from tariffs cuts.
Gems and jewellery is another sector which is a huge export category from India, and is poised to gain from the trade deal. Industrial and engineering goods including steel and chemicals may also see smoother market access, though analysts said that some products such as steel, aluminium and copper will still face around 50 per cent duty.
Further, certain auto components may continue to face significant tariffs despite the new trade deal, they added.
India and the US reached a trade deal following a phone call between Prime Minister Narendra Modi and US President Donald Trump, cutting US tariffs on Indian goods to 18 per cent and easing Indian trade barriers on US products.
The agreement also reportedly included India’s commitment to reduce purchases of Russian oil and increase imports from the United States and potentially Venezuela.
PM Modi also took to X and said, “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
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