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.

India-US trade deal: While the announcement of India-US trade deal brought a welcome relief rally in domestic stock markets and cheered exporters, a lot still remains unknown about the key details of the trade agreement. The biggest takeaway from US President Donald Trump and Prime Minister Narendra Modi’s social posts is that the reciprocal tariff on Indian exports has been reduced to 18% effective immediately. Commerce Minister Piyush Goyal’s press conference on Tuesday also offered little details, though he was clear that sensitive sectors of agriculture and dairy will continue to be protected. India has secured a “very good” trade agreement with the United States, placing it in a more favourable position compared with rival nations, Goyal said.Countries that compete closely with India in labour-intensive industries on the global stage include China, Vietnam with tariffs of 20%, Malaysia at 19%, Bangladesh at 20%, and Cambodia and Thailand, both facing duties of 19% each.Trump’s post on Truth Social made several claims on tariff rates, India’s oil purchase strategy, halting of Russian crude imports, stepping up purchase of US goods and much more. India on its part has not endorsed most of these claims, and several questions related to the India-US trade deal remain unanswered:

Q.1 Will India stop buying Russian crude oil?

What Trump said: “He (PM Modi) 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!”What we know so far: India has not officially said that it will stop buying Russian crude oil. Indian refiners have not received any directive from the government to halt purchases of Russian crude and would require time to wind down transactions that are already underway, two refinery sources told Reuters.Also Read | India-US trade deal: 25% penal tariffs linked to Russian oil gone? White House confirms, but there’s a catchIndia’s imports of Russian crude had touched a high of about 2 million barrels per day in June last year. Trump said on Saturday that India would purchase oil from Venezuela. However, refinery officials noted that only Reliance Industries and Nayara Energy possess the technical capability to handle large volumes of heavy crude. According to the sources quoted by Reuters, state run refiners cannot easily switch to Venezuelan oil and would be able to substitute less than 10% of the volumes currently sourced from Russia. Trade data showed that India’s Russian oil imports slipped to a two year low in December.

India-US trade deal timeline

Indian refiners have increasingly turned to suppliers in the Middle East, Africa and South America as they gradually cut back on Russian crude purchases, a trend that became evident last month.Meanwhile, Russia has also not received any official communication from India indicating any move to halt purchases of Russian crude, Kremlin spokesperson Dmitry Peskov said on Tuesday.”“We haven’t heard any statements from New Delhi on this matter yet,” Peskov said.The Kremlin spokesperson added that Moscow plans to continue strengthening its relationship with India across all areas of cooperation.

Q2. Will India reduce tariffs on American goods to zero?

What Trump said: “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.”Commerce Minister Piyush Goyal has not clarified on whether tariffs on US goods to India will be brought down to nil. In his statement to the media, he explained that the final details of the trade deal are still being worked out and a joint statement will be issued soon.Also Read | Lower than Pakistan, China: How trade deal with US gives India its edge back against South Asian competitors PM Modi’s social media post after Trump’s trade deal announcement also did not talk of tariff barriers on US goods. It welcomed the reduction of tariffs to 18%.US Trade Representative Jamieson Greer said on Tuesday that the Trump administration is in the process of formally concluding the trade pact announced with India, while pointing out that New Delhi continues to retain safeguards for its agricultural sector.In an interview with CNBC, Greer said the agreement was now being put into final form. “We’ll finish papering it, but we know the specifics, we know the details,” he said. He also noted that as the wider deal progresses, India “is maintaining ⁠some protection around agricultural goods.”Greer added that the agreement would substantially liberalise India’s industrial market, with a sharp reduction in duties on manufactured products.“India’s industrial goods tariffs will go to zero from 13.5%,” he said.

Q3. Will India buy US goods worth $500 billion and what’s the timeline for this?

What Trump said: “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.” While Trump’s post mentions agricultural products, Piyush Goyal that the India-US trade deal will protect the agricultural and dairy sectors. Also, there is no word from India on any commitments to step up US energy, technology, coal purchases.As Global Trade Research Initiative (GTRI) notes: Trump claims India will reduce tariffs and non-tariff barriers on US products to zero, but does not specify how many products are covered under India’s commitment. India has previously resisted opening sensitive sectors such as food grains, genetically modified products, and other regulated imports.Also Read | India-US trade deal: Top 7 points Trump says he agreed on with PM Modi“Trump says India will buy over $500 billion of US goods. At present, India’s annual imports of goods and energy from the US are under $50 billion. Reaching $500 billion would likely require more than 20 years, suggesting the figure refers to a long-term aspiration rather than a near-term commitment,” GTRI says.More clarity on key aspects of the India-US trade deal are expected to emerge in the coming days – for now exporters are breathing a sigh of relief that dealings with India’s largest trading partner are back on track.