PANews reported on February 3 that US President Trump announced a trade agreement with India. Under the agreement, the US will drastically reduce tariffs on Indian goods from 50% to 18% in exchange for India lowering trade barriers, ceasing purchases of Russian oil, and instead buying oil from the US and, possibly, Venezuela. Trump stated that Indian Prime Minister Modi pledged to significantly increase "buying American goods," including over $500 billion worth of energy, technology, and agricultural products.

Under the agreement, the United States will remove the 25% punitive tariffs previously imposed on India's purchases of Russian oil. Furthermore, Modi stated that the agreement will allow "Made in India" products to enjoy lower tariffs and expressed his gratitude to Trump.

Analysts believe this move will align India's tariff levels with those of other Asian countries, helping to eliminate the drag on Indian exports and the rupee exchange rate. India's trade minister also stated that the agreement will bring more development opportunities to the Indian economy.

It is worth noting that the details of this agreement have not yet been fully disclosed, including the specific timeline for tariff reductions and the list of US goods that India has pledged to purchase. Meanwhile, Trump has also hinted that India might replace some of its Russian oil imports by purchasing Venezuelan oil.