India and the United States recently announced a trade deal, with U.S. President Donald Trump and Prime Minister Narendra Modi saying that U.S. tariff rates on Indian goods will be cut to 18%. While this is seen as a positive step for trade, there are still several unanswered questions. It is not clear how the broader Free Trade Agreement (FTA) will work or what investment commitments India will make in the U.S. Another concern is how the deal will affect India’s purchase of Russian oil, given U.S. sanctions on Russia. There are also questions about whether the agreement will impact the development of Chabahar port in Iran, which India is building for trade with Afghanistan. Experts and businesses are waiting for more details on tariff schedules, sectoral benefits, and long-term trade rules. The deal is expected to boost bilateral trade, but many details must still be clarified before its full impact is known.
India-U.S. Trade Deal: Tariff Cut Announced, But Key Issues Remain
