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Guwahati, Feb 4: India has successfully concluded a tariff agreement with the United States following a conversation between Prime Minister Narendra Modi and US President Donald Trump on Monday evening. This new arrangement grants India a tariff rate that is more favorable than that of many other nations.

According to sources from the Prime Minister’s Office (PMO), the two leaders engaged in an extensive phone discussion, resulting in a reduced tariff of 18 percent for Indian goods. Modi expressed gratitude to Trump on behalf of India's 1.4 billion citizens immediately after the agreement was reached.

However, it was noted that the formal signing of the agreement may take some time, as several issues need to be addressed before the finalization. Relevant ministers and officials will convene to iron out the details of the trade deal, which is expected to take a while. Nonetheless, both nations are eager to finalize the agreement promptly after reaching a consensus on the tariff rate.

Discussions with the USA had been ongoing for an extended period, but the final agreement was only reached recently.

Once signed, this deal is anticipated to significantly benefit Indian exporters.

In terms of energy procurement, India plans to source oil from the most cost-effective options available, while committing not to purchase from sanctioned nations or companies.

Venezuela, previously under sanctions, has recently been removed from the list. Prime Minister Modi has had discussions with Venezuela's acting Prime Minister, and India may resume oil imports from Venezuela, contingent on pricing.

Additionally, the agriculture sector will remain protected to support Indian farmers, with no plans to open it up to foreign competition.

PMO sources indicated that the 18 percent tariff offered to India is among the lowest provided by the USA to any country.

In comparison, India's competitors such as Indonesia face a tariff of 19 percent, Vietnam and Bangladesh at 20 percent, and China at 34 percent.

This tariff agreement with the USA follows closely on the heels of a significant tariff deal signed with the European Union, referred to as the 'mother of all deals,' which was finalized on January 27 in New Delhi, with Modi and EU President Ursula von der Leyen in attendance.