"Duniya jhukti hai, jhukaney wala chahiye": PM's Economic Advisory Council member Sanjeev Sanyal

Sanyal's remark, which translates to "The world bends, but one must be willing to bend," comes moments after US President Donald Trump said that the US and India "have agreed to a trade deal" with Washington reducing the reciprocal tariff from 25 per cent to 18 per cent, "out of friendship and respect" for PM Modi.

In his Truth Social post, Trump referred to his conversation with PM Modi earlier in the day, noting that the Prime Minister is one of his closest friends and a powerful, respected leader of India.

The US President also claimed that PM Modi had agreed to "stop buying Russian oil" and to buy much more from the US.

Trump further noted that India would reduce tariffs and non-tariff barriers against the US.

"It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO," Trump's post read.

Following Trump's post, Prime Minister Narendra Modi, in a post on X, said that it was wonderful to speak with his "dear friend President Trump" and expressed delight that "Made in India products will now have a reduced tariff of 18%".

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," PM Modi wrote in a post on X.

Union Minister for Railways and Information & Broadcasting Ashwini Vaishnaw also lauded the India-US trade deal, describing it as a "win-win deal" that will benefit citizens and industries of both countries.

"US and India are the world's largest democracies. Both countries are natural allies. Together, India and US have huge potential to work for peace and development. US and India have complementary strengths. Both countries can co-create technologies and co-develop solutions that will benefit the world. Trade deal between US and India will lead to a brighter future for both countries. India-US Trade deal is a win-win deal. Citizens and industries of both countries will benefit greatly from this deal," the Union Minister stated in a post on X.

India now faces lower tariffs than its regional export competitors in South and Southeast Asia.

With the new tariff structure, India now has a clear advantage over competing export economies in the region, with lower tariff rates compared to Indonesia at 19 per cent and Bangladesh and Vietnam with 20 per cent each.

Compared to China, India now enjoys significantly lower tariffs, with tariffs levied on Beijing at 34 per cent.

India also enjoys a slight edge over Pakistan, with tariffs on Islamabad currently levied at 19 per cent. (ANI)