India and the United States have achieved a significant diplomatic and trade breakthrough with a new trade agreement lowering US tariffs on Indian goods to 18%. The pact involves Indian commitments to diversify energy purchases, including from the US, and expanded procurement across sectors like defence and aircraft, boosting bilateral ties amidst shifting geopolitical pressures.
Key Points:
Tariff reduction: US cuts tariffs on Indian goods to 18% from much higher levels, enhancing market access.
India’s commitments: India agrees to buy key US goods (petroleum, defence equipment, aircraft), deepening economic and defence linkages.
Market impact: Indian rupee likely to strengthen; equities rally on trade certainty and capital inflows.
Geopolitical context: Deal comes amid global trade tensions and US pressure on India’s energy ties with Russia.
Strategic diplomacy: Indian External Affairs Minister meets US counterparts to sustain momentum.
MCQ: The India–US trade agreement (2026) reduces US tariffs on Indian goods to what level?
A) 10% B) 18% C) 25% D) 35%
SSB tips: The India–US trade deal to national interest, strategic autonomy, and practical solutions—think balanced, logical, and officer-like, not opinionated.
