India and the United States have agreed on a framework for a bilateral trade deal under which Washington will reduce tariffs on Indian goods to 18% from the current 50%.The announcement is significant as the US had imposed steep duties on Indian exports entering American markets, effective August 27, 2025.

In August 2025, Washington announced a 25% tariff along with an additional 25% punitive duty on India for purchasing Russian crude oil and military equipment. These duties were imposed over and above existing tariffs on Indian goods. Under the new framework, the overall duty has now been brought down to 18% .Prime Minister Narendra Modi welcomed the move, saying he was delighted that “made in India products will now have a reduced tariff of 18%.”Tariffs are customs or import duties imposed by a country on goods bought from other nations.

How India compares globally

A comparison of US tariff rates across major economies places India in the middle of the global tariff spectrum, with an 18% duty on its exports.Brazil faces the steepest tariff at 50% , followed by Myanmar and Laos at 40% each. China attracts a 37% tariff, while South Africa faces a 30% levy.Several manufacturing hubs in Southeast Asia are subject to duties in the 19–20% range, including Vietnam and Bangladesh at 20% , and Malaysia, Cambodia and Thailand at 19% each.With an 18% tariff, India is now placed below most emerging-market competitors, offering it a relative pricing advantage in the US market.Advanced economies enjoy significantly lower tariffs. The European Union, Switzerland, Japan and South Korea each face a 15% duty, while the United Kingdom has the lowest rate at 10% .The reduction in tariffs is expected to benefit India’s labour-intensive sectors, as exporters will be able to price their products more competitively in the US market.

Why the US imposed tariffs

The US has argued that it faces a significant trade deficit with India, blaming New Delhi for imposing high tariffs on American goods, which it says restrict US exports to the Indian market.Under the proposed pact, India is expected to eliminate duties on certain goods immediately, phase out duties on others, reduce tariffs in some sectors, and offer quota-based tariff concessions for select products.However, sensitive sectors such as agriculture and dairy remain completely outside the ambit of the agreement, PTI reported.An executive order from the US is expected to provide greater clarity on tariff changes, while a joint statement from both countries will outline the sectors covered under the deal. Both are awaited.

Air India Plane’s Fuel Control: The Ministry of Civil Aviation on Tuesday issued a rejoinder on the news item relating to the purported malfunction of the fuel cut-off switch on Air India’s Boeing B787-8 aircraft VT-ANX in London. 

The rejoinder states that, based on the Boeing recommended checks to establish the serviceability of the fuel control switch, Air India engineering observed that: “Both left and right switches were checked and found satisfactory, with the locking tooth fully seated and not slipping from RUN to CUTOFF. When full force was applied parallel to the base plate, the switch remained secure. However, applying external force in an incorrect direction caused the switch to move easily from RUN to CUTOFF, due to the angular base plate allowing slip when pressed improperly with finger or thumb.”

In addition, based on Boeing’s communication, the pull-to-unlock force was checked on the fuel control switch using the recommended procedure on the involved fuel cut-off switch, the fuel control unit to be installed, and the fuel cut-off switch of another aircraft. In all cases, the pull-to-unlock force was found within limits. These inspections were carried out in the presence of DGCA officers, the ministry’s statement said.

The video currently circulating on social media was analysed in light of Boeing’s recommended procedures, and it was observed that the procedure demonstrated in the video being circulated is incorrect, the statement observed.

The airline is being advised to circulate the Boeing recommended procedure for the operation of the Fuel CUT OFF switch to its crew members, the statement said.

On February 1, 2026, Air India B787-8 aircraft VT-ANX operated flight AI 132 (London- Bengaluru). During engine start in London, on two occasions, the crew observed that the fuel control switch did not remain positively latched in the ‘RUN’ position when light vertical pressure was applied. On the third attempt, the switch latched correctly in ‘RUN’ and subsequently remained stable. Before continuing with the rest of the procedure, a physical verification was performed by the crew to confirm that the switch was fully and positively latched in the ‘RUN’ position. No abnormal engine parameters, cautions, warnings, or related system messages were observed during engine start or at any time thereafter.

The operating crew member was briefed on the observation, unnecessary contact with the switch was avoided, and engine indications and alerting systems were closely monitored by the crew for the remainder of the flight. The flight was completed without incident.

After landing at Bengaluru, the crew reported the defect in the PDR. Air India referred the matter to Boeing for further guidance, after which the airline’s engineering department carried out the checks in the presence of DGCA officials, the statement said.