India’s historic trade deal finalisation with the United States was preceded by Prime Minister Narendra Modi’s commitment to stop purchases of Russian crude oil and instead buy oil from the US and Venezuela, said White House Press Secretary, Karoline Leavitt, on Tuesday.
Hailing the new trade agreement between the two countries, she also said PM Modi agreed to invest USD 500 billion across key American sectors.
“The President struck another great trade deal with India. He spoke with Prime Minister Modi directly. They share a very good relationship. India is committed to not only no longer purchasing Russian oil, but buying oil from the United States, also perhaps from Venezuela too, which we know will now have a direct benefit on the United States and the American people,” Leavitt told reporters.
On India’s investment in the US, she said further: “Prime Minister Modi committed to $500 billion of investments into the United States, including for transportation, for energy and for agricultural products as well. So this is another great trade deal thanks to President Trump.”
Earlier, Leavitt had told a US TV channel that the two leaders had a “great call” on Monday, following which the bilateral trade deal was announced. “...when it comes to Prime Minister Modi, I know he (Trump) particularly enjoys their relationship and has a deep respect for the Prime Minister and for his country of India,” she said, adding, “They had a great call. It was very productive yesterday, and they struck a deal in which India has agreed to stop purchasing Russian oil to buy more American oil from the United States of America, and potentially from Venezuela too.”
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Leavitt added that Trump and his national security team are “now dictating” the commerce of Venezuela and those oil sales.
The India-US trade deal, she said, comprises reduction of US tariff on India to 18 per cent, and Indian tariff on American exports to 0 per cent. “So this is a great deal and a huge win for American workers, businesses and consumers alike,” she said.
In a Truth Social post on Monday, Trump had said that, effective immediately, the two sides agreed to a trade deal under which the US will lower its reciprocal tariff imposed on India from 25 per cent to 18 per cent. India will also move forward to reduce its tariffs and non-tariff barriers against the United States to “zero”.
“The Prime Minister also committed to ‘BUY AMERICAN’, at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products.
“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people who GET THINGS DONE, something that cannot be said for most,” Trump wrote.
PM Modi, in reply, said it was wonderful to speak with his “dear friend” Trump. “Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” the PM added.
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