TEN NEWS NETWORK
The sharp reduction of tariffs—from 50% to 18%—signals a meaningful recalibration of trade relations between the world’s two largest democracies. Years of sustained patience appear to have paid off. This development is a clear win for Indian manufacturers and exporters, even as India must continue to negotiate from a position of strength and strategic caution—particularly when dealing with Donald Trump, an unpredictable negotiator whose abrupt reversals have repeatedly unsettled global trade.
Under the India–US interim trade deal announced in February 2026, several Indian exports will now enjoy zero tariffs, while others will face a significantly reduced rate of 18%. This represents a substantial expansion of market access for Indian goods. Multiple sectors stand to benefit, with the United States eliminating duties entirely on select Indian products, allowing them to enter the US market duty-free.
In international diplomacy, strategic clarity matters as much as openness.
This tariff rollback must be viewed within the broader context of two important geopolitical developments. The first is India’s deepening trade engagement with the European Union. The second is the BRICS Summit in Shanghai, where India, China, and Russia reaffirmed their collective economic and strategic weight. The imagery of these leaders in dialogue—alongside discussions on alternative payment systems that challenge dollar dominance—sent a clear signal that global power equations are evolving.
Under Prime Minister Narendra Modi, India has demonstrated that it can engage the United States without compromising its strategic autonomy. Strong ties with Washington do not imply submission to pressure or acquiescence to unilateral demands.
While the United States may continue to dominate global military and economic rankings, India’s ascent to the position of the world’s fourth-largest economy is neither accidental nor negotiable. India will maintain constructive relations with all responsible nations, while firmly isolating rogue states such as Pakistan that persist in exporting terrorism.
Crucially, the exclusion of dairy and core agricultural products from the revised trade deal ensures that Indian farmers—the backbone of the nation—are not sacrificed at the altar of diplomacy. The export basket prioritizes sectors where India holds clear competitive advantages: textiles and apparel, leather and footwear, handlooms, fisheries, gems and diamonds, silk and cotton goods, carpets, bedsheets, and curtains. On the import side, India will source energy and fuel products, machinery and advanced technology, precision and medical instruments, precious stones and metals, chemicals and plastics, as well as aluminium, iron, and steel—inputs essential for industrial growth.
Additionally, select bakery and processed food products have secured zero-tariff access to the US market, offering a meaningful boost to exporters in these value-added segments.
Speculation that India will halt oil purchases from Russia should be viewed with skepticism. India’s foreign policy decisions are driven by national interest, and its longstanding strategic partnership with Russia will not be compromised by external pressure.
The government must now intensify its focus on strengthening MSMEs, supporting entrepreneurs, and accelerating indigenous manufacturing. India does not lack capability; it requires consistent policy support and a collective commitment to the “Make in India” vision.
Trade agreements succeed only when they serve mutual interests. While limited American products may enter Indian markets, expanded access for Indian goods in the United States will provide a decisive boost to exports, economic growth, and currency strength.
It is worth recalling Donald Trump’s own words when he described Prime Minister Modi as a “tough negotiator.”
India has retained firm protections for sensitive sectors such as staple foods, dairy, and select agricultural products, where tariff reductions or market access changes have been deliberately excluded. If domestic stakeholders—especially farmers—have been safeguarded, then this revised trade deal is not a concession, but a confident and calculated step forward.
India’s global stature is rising—slowly, steadily, and unmistakably.
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