India and the United States have taken a decisive step to reset their trade relationship after a direct phone conversation between Prime Minister Narendra Modi and US President Donald Trump. The announcement, made by President Trump, signals a sharp shift in tariffs, energy trade, and overall economic engagement between the two countries.

According to the US President, the new agreement will come into force immediately and is expected to provide relief to Indian exporters while opening fresh opportunities for American businesses. Trump described Prime Minister Modi as a close friend and said the understanding reflects mutual respect and practical decision-making by both leaders.

Under the deal, the United States will lower tariffs on Indian goods to 18 per cent from the earlier 25 per cent, a move that could significantly improve the competitiveness of Indian products in the American market. Trump also claimed that India has agreed to gradually reduce its tariff and non-tariff barriers on US goods, signalling deeper market access for American companies.

Another major claim made by Trump relates to energy trade. He stated that India would stop purchasing Russian oil and instead increase crude imports from the United States and potentially Venezuela. According to him, this shift could also contribute to easing global tensions linked to the Russia-Ukraine conflict.

Trump further said that India has committed to buying goods worth over USD 500 billion from the US across sectors such as energy, agriculture, technology, and coal. While detailed official documentation from the Indian side is awaited, the announcement has already sparked political debate and economic discussion in New Delhi.

Prime Minister Modi welcomed the tariff reduction, calling it beneficial for “Made in India” products and stressing that cooperation between the world’s largest democracies creates new opportunities for growth, stability, and global prosperity.