In New Delhi on Tuesday, Prime Minister Narendra Modi addressed a gathering of the BJP-led National Democratic Alliance (NDA) parliamentary party, where he highlighted the significance of the recently announced India–United States trade agreement. Describing it as a "big decision," Modi emphasized that this pact would "benefit everyone in the country," underscoring its potential to uplift various sectors of the Indian economy.
NDA Coalition Applauds Trade Agreements
During the meeting, coalition partners from the NDA extended their congratulations to Prime Minister Modi for securing trade deals with both the European Union and the United States. The EU agreement was formally signed on January 27, while the US deal was announced by President Donald Trump on Monday. These agreements are expected to provide a substantial boost to Indian manufacturers, exporters, and entrepreneurs, fostering greater economic growth and international competitiveness.
PM Modi's Remarks on Electoral Success
Union Minister Kiren Rijiju briefed the media on the prime minister's comments, revealing that Modi attributed the NDA's electoral victories to "people-friendly policies" and "sustained hard work." Quoting the prime minister, Rijiju noted, "The NDA is winning one election after another due to its good work. Elections cannot be won without being on the ground. We must remain engaged with the people and continue our efforts for their welfare."
Modi also urged NDA Members of Parliament not to become "complacent" following successes in various polls, including local body elections. Instead, he encouraged them to persist with their diligent work and public service initiatives.
Guidelines for Parliamentary Responsibilities
Rijiju further elaborated that the prime minister provided "broad guidelines" to NDA MPs from both the Lok Sabha and Rajya Sabha. These directives aim to help them effectively carry forward their parliamentary duties and welfare activities. The meeting saw participation from MPs representing key NDA constituents such as the BJP, TDP, JD(U), LJP (R), Shiv Sena, and JD(S), among others.
Details of the India-US Trade Deal
The trade agreement between India and the United States involves a significant reduction in reciprocal tariffs. Washington has agreed to lower its tariff on Indian goods to 18% from a previous total of 50%. This development followed a telephonic conversation between Prime Minister Modi and President Trump, after which Trump announced on his Truth Social platform that the deal would take effect "immediately."
While specific details are still pending disclosure, Trump indicated that the US would reduce its reciprocal tariff from 25% to 18%. In return, New Delhi has committed to eliminating its tariffs and non-tariff barriers against the United States, bringing them down to zero.
Trump's Claims on Oil Purchases
President Trump also made assertions regarding India's oil procurement strategies. He claimed that half of the 50% tariffs previously imposed on India were due to its purchases of Russian crude oil. According to Trump, India has now committed to halting oil purchases from Russia and will instead buy "much more oil" from the United States and potentially from Venezuela.
This statement comes amid geopolitical tensions, as US forces conducted a military operation in Venezuela on January 3, resulting in the capture of Venezuelan President Nicolás Maduro and his wife. However, these claims have been met with contradictions from Russian sources, which assert that New Delhi has not indicated any intention to stop buying Russian oil.
The trade deal represents a pivotal step in strengthening economic ties between India and the United States, with potential long-term benefits for both nations' economies and global trade dynamics.
