The governments of India and the United States have reached a mutual understanding on a new trade agreement aimed at reducing existing trade barriers. The development follows a phone conversation between Prime Minister Narendra Modi and US President Donald Trump that took place on Monday, 2 February.

Under the agreement, the United States will reduce import tariffs on Indian goods from the current rate of 25 percent to 18 percent. The move is part of a broader initiative to enhance bilateral trade relations and promote balanced trade between the two countries.

He criticised the opposition while speaking on the subject of India-US trade relations. In his statement, Goyal alleged that certain political leaders show little interest in supporting the country’s goal of becoming the world’s fastest-growing major economy.

He specifically named Congress leader Rahul Gandhi, stating that he symbolises negativity and added that such leaders fail to contribute meaningfully to the nation’s development journey.

Accusations Against Previous UPA Government

During his address, Goyal took aim at the economic record of the United Progressive Alliance (UPA) government, which was in power from 2004 to 2014. He alleged that the Congress-led administration mismanaged the economy and created hardships for the common people. According to him, the policies during that decade adversely impacted the country’s growth.

Goyal further claimed that economic progress was significantly stalled during the UPA’s tenure and that critical opportunities for development were lost.

Emphasis on Government’s Economic Initiatives

While outlining the current government’s agenda, Piyush Goyal reiterated that the focus remains on driving sustainable and inclusive growth. He highlighted India’s increasing role in global trade and noted that the country has emerged as a key destination for investment and manufacturing.

Goyal also pointed to the ongoing efforts aimed at improving trade ties with major global partners, including the United States. He stated that bilateral trade between India and the US continues to grow and has the potential to reach new heights with continued cooperation and mutual trust.

Broader Context of Political Exchanges

The remarks come amid heightened political exchanges between the ruling party and the opposition ahead of key economic discussions and global forums. The ongoing debate highlights the contrasting approaches of different political parties towards economic reform and foreign trade relations.

Goyal’s comments reflect the government’s broader narrative that positions its economic policies as a departure from the previous administration and a step towards making India more competitive on the global stage.

Key Highlights of the Revised Tariff Arrangement

As part of the proposed arrangement, the US plans to lower duties imposed on a variety of Indian exports. The revised tariff structure is intended to ensure greater market access for Indian products in the American market. The agreement is based on the principle of reciprocal trade terms, which forms the core of the discussed deal.

Although specific product categories impacted by the tariff reduction have not been disclosed yet, officials expect the move to benefit several sectors across manufacturing and agriculture. Both nations have expressed willingness to finalise the technical aspects of the deal in the coming weeks.

Union Minister Piyush Goyal to Address Concerns

Union Commerce Minister Piyush Goyal is scheduled to provide detailed information on the trade agreement between India and the United States. He is also expected to respond to recent objections raised by members of the opposition regarding the nature and terms of the pact.

The minister’s briefing will likely address perceived concerns about India’s trade interests and how the agreement aligns with the government’s wider economic strategy. Stakeholders from various industries are anticipating further clarity on the scope of tariffs and their practical implications.

Bilateral Trade Relations See Renewed Momentum

The latest development marks a positive shift in India-US trade ties, which have experienced fluctuations in recent years due to disagreements over tariffs, market access, and regulatory standards. Both countries have frequently cited the importance of equitable trade relations and have engaged in multiple rounds of negotiation to arrive at common ground.

This agreement follows earlier efforts by the two nations to overcome previous trade hurdles and strengthen cooperation across economic and strategic domains. Analysts note that reduced tariffs could help increase the volume of goods traded between the two economies, though the full impact would depend on forthcoming policy details.

Representatives from both nations have signalled a commitment to building a more robust and balanced economic partnership through such agreements. Further deliberations are expected as both sides work on formalising the trade pact and addressing any remaining technicalities.

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