The U.S. and India have finalized a trade deal on Monday after months of negotiations, steadying a relationship that had plummeted to its lowest point in decades.

India and the US have reached a breakthrough trade deal, significantly easing global uncertainty for India's trade outlook. The agreement, announced by President Trump, includes a sharp reduction in US tariffs on Indian goods to 18% and withdrawal of penal levies on Russian oil purchases.

According to a Reuters report, India has agreed to purchase petroleum, defence equipment and aircraft from the United States, while also partially opening its tightly regulated agriculture sector under a trade agreement.

Throughout the negotiations with the United States, Piyush Goyal’s messaging remained consistent. India was open to deeper trade integration but would not accept terms that harmed farmers, MSMEs, or domestic manufacturing.

President Donald Trump announced on Monday that the United States and India reached a trade agreement, which will lower the tariff rate on goods coming into the U.S. to 18 percent. In exchange, Indian Prime Minister Narendra Modi has agreed that his country will stop buying Russian oil and will make a $500 billion investment in various U.