Modi bows down; forced to stop buying oil from Russia and enter a trade deal with Trump
Modi has pledged to reduce Indian tariffs and non-tariff barriers on American goods to zero.
President Donald Trump has announced that a significant trade agreement has been mutually agreed upon between the United States and India.
According to an international news agency, President Trump said that a trade deal with India has been finalized, which will further strengthen partnership and trade cooperation.
Under the agreement, the US government will reduce the retaliatory tariffs imposed on India from 25 percent to 18 percent.
In return, India has pledged to reduce its tariffs and non-tariff barriers on American goods to zero
President Trump said that India has agreed to stop purchasing oil from Russia, and that he will now allow India to buy more oil from the United States and possibly from Venezuela.
President Trump said that Indian Prime Minister Narendra Modi has also agreed to purchase American energy, technology, agricultural, and other goods worth more than 500 billion dollars, which is expected to increase US exports.
It should be remembered that despite European and American sanctions imposed on Russia in the context of the Ukraine war, India had not stopped buying oil from Russia at cheaper rates.
Despite repeated American warnings, India’s stance remained that the United States itself also buys oil from Russia and that this is India’s internal matter.
In response, US President Trump expressed strong displeasure and maintained pressure on India by increasing tariffs.