India–US Trade Deal: Products Likely to Become Cheaper for Indian Consumers

Mumbai: India’s agreement with the United States to reduce reciprocal tariffs is expected to lower prices for a wide range of goods in the domestic market, including technology products, select agricultural items, and consumer goods.

According to reports, tech hardware and components such as laptops, gadgets, and other consumer electronics are likely to become more affordable. Lower import costs could also benefit processed foods, packaged items, and household appliances.

Agricultural imports, including pulses, dairy products, and processed foods, may see a reduction in import duties, potentially helping to ease pressure from rising food inflation. However, the government has yet to release official details on the specific terms and conditions of the agreement.

The India–US trade pact is expected to reshape trade flows between the world’s two largest democracies. Indian sectors such as textiles and apparel could gain from tariff reductions, while gems and jewellery — one of India’s major export categories — is also poised to benefit.

Industrial and engineering goods, including steel and chemicals, may experience improved market access. However, analysts caution that certain commodities such as steel, aluminium, and copper could still attract duties of around 50 per cent. Some auto components may also continue to face relatively high tariffs despite the deal.

The trade agreement was reached following a phone conversation between Prime Minister Narendra Modi and US President Donald Trump. Under the arrangement, US tariffs on Indian goods have reportedly been reduced to 18 per cent, while India has agreed to ease trade barriers on American products.

Reports also suggest that India has committed to reducing its purchases of Russian oil and increasing energy imports from the United States, and potentially from Venezuela.

Confirming the development, Prime Minister Modi posted on X, saying, “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.”

With inputs from IANS