Boost to 'Make in India', growth: Jaishankar on India-US trade deal

New Delhi (PTI): External Affairs Minister S Jaishankar on Tuesday welcomed the India-US trade agreement, saying it will spur growth in both economies and strengthen the country's 'Make in India' endeavours.

Jaishankar, who is on a three-day visit to the US to attend a Washington-led ministerial meeting on critical minerals supply chain, said he "welcomed the announcements on bilateral trade".

India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.

In a post on 'X', Jaishankar said, "This will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavors and encourage trusted technology ties."

"The opportunities in our economic engagement are truly vast and we are confident of realizing them. A robust economic relationship is the strongest foundation for our strategic partnership," the external affairs minister added.

Following the trade agreement announcement, PM Modi said he was delighted that "Made in India products will now have a reduced tariff of 18 per cent".

"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," Modi said.

He said when two large economies and the world's largest democracies work together, it benefits the people and "unlocks immense opportunities for mutually beneficial cooperation".

"President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace," Modi said on 'X'.

President Trump said India will move forward to reduce "tariffs and non tariff barriers" against the US to zero, adding New Delhi would buy American goods, including energy, worth more than USD 500 billion.

"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25 per cent to 18 per cent," the US president said on social media.

India will "likewise move forward to reduce their tariffs and non tariff barriers against the United States, to zero", he said.

Trump said Modi also committed to buy American goods at much higher level, in addition to over USD 500 billion dollars of US energy, technology, agricultural, coal, and many other products.

"Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done something that cannot be said for most," he said.

Trump said Modi and he also discussed ending the war between Russia and Ukraine.

"He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," the US president said.

"This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week," Trump said.

The Modi-Trump phone talks came on a day EAM Jaishankar travelled to Washington DC.

India has now lower tariff compared to competing export economies, officials said.

They cited 19 per cent American tariffs on Indonesia, 20 per cent on Vietnam, 20 per cent on Bangladesh and 34 per cent on China.