India Drops Russian Oil; Trump Slashes Tariffs

Modi said on X that he is "delighted" that an agreement with the US has been reached.

"Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," Modi said on X.

"When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation," he added.

Terry Haines, founder of Pangaea Policy, an analysis and forecasting firm, called the Washington-Delhi deal "an answer to those thinking the EU is flanking or gaining speed on the US on trade."

He said he expected US markets to "cheer" the agreement.

We Pay the Tariffs, a coalition of 800 US small businesses, criticised the announcement, noting that before Trump's tariffs policies were implemented, American importers paid an average of 2.5% on goods from India.

"This 'deal' locks in a rate six times higher than what we were paying a year ago," the organisation's director, Dan Anthony, said. "That's not relief, it's a permanent tax hike that will be in place for a long time."