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India welcomes US tariff cut as PM Modi thanks Trump for easing trade barriers

PM Modi has thanked US President Donald Trump after the US reduced tariffs on Indian goods to 18%, calling the move beneficial for bilateral trade.

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Prime Minister Narendra Modi on Sunday welcomed US President Donald Trump’s decision to lower tariffs on Indian goods, describing the move as one that unlocks significant opportunities for cooperation between the two countries.

Minutes after President Trump announced the reduction on his social media platform, the Prime Minister took to X to express his appreciation, calling the development a boost for “Made in India” products entering the US market.

“Delighted that Made in India products will now have a reduced tariff of 18 per cent,” PM Modi said, thanking President Trump on behalf of India’s 1.4 billion people.

The Prime Minister said he had a “wonderful” conversation with President Trump and underlined the broader significance of the decision, noting that closer economic cooperation between the world’s two largest democracies benefits people on both sides.

PM Modi also said that when two major economies work together, it opens doors for mutually beneficial growth, adding that India supports President Trump’s efforts aimed at global peace, stability, and prosperity. He said he looked forward to strengthening the partnership further.

President Trump, while announcing the tariff reduction, described the move as a “trade deal” and referred to PM Modi as a close friend and a respected leader.

Trade signals positive momentum

The US India Strategic Partnership Forum described the tariff reduction as an important and positive first step in strengthening bilateral trade relations.

While the detailed terms of the agreement are yet to be finalised, the announcement reflects political intent on both sides to move towards a broader US-India bilateral trade agreement. Such an agreement is expected to address issues related to tariffs, market access, non-tariff barriers, and trade across multiple sectors.

How tariffs on Indian goods evolved

The latest decision comes after months of tariff fluctuations on Indian exports to the US.

Timeline of key developments

  • April 2, 2025: The US imposed a 26% reciprocal tariff on several Indian imports as part of global tariff actions.
  • April 10, 2025: The tariffs were paused for 90 days, with a 10% duty retained on all US imports.
  • July 31, 2025: A 25% tariff was announced on Indian goods, along with a warning linked to India’s purchase of Russian oil.
  • August 7, 2025: Tariffs were raised to 50%, the highest imposed on any US trade partner at the time.
  • February 2, 2026: The US announced a reduction in tariffs on Indian goods to 18%.

The latest rollback marks a significant easing of trade tensions and sets the stage for deeper engagement between India and the United States.

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India eyes bigger role in global AI race with mega summit in New Delhi

India hosts one of the largest AI gatherings in New Delhi, with global tech leaders and policymakers discussing frontier models, multilingual AI and digital infrastructure.

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India on Monday began hosting one of the world’s largest artificial intelligence gatherings, with Prime Minister Narendra Modi seeking to position the country as a key player in the race to build advanced AI systems.

The India AI Impact Summit in New Delhi is drawing world leaders, technology executives, AI founders and investors. Among those expected to attend are Sundar Pichai of Alphabet Inc., Sam Altman of OpenAI Inc., Dario Amodei of Anthropic PBC and Alexandr Wang, linked to Meta Platforms Inc. initiatives. AI researchers such as Yann LeCun and Arthur Mensch are also on the guest list.

French President Emmanuel Macron will deliver a keynote address on February 19, followed by remarks from PM Modi during the summit’s concluding sessions.

Leveraging India’s digital infrastructure

The summit is being seen as an opportunity for India to showcase its digital public infrastructure, including the Aadhaar biometric identity system that covers more than a billion people. Officials argue that combining AI with digital identity, payments, health, education and governance platforms could accelerate development across sectors.

India has previously demonstrated rapid technological adoption — transitioning from limited landline penetration to nearly a billion smartphones within two decades and emerging as a global software services hub despite missing the personal computer boom.

The country’s digital identity model has also been exported. MOSIP, an open-source platform inspired by Aadhaar’s framework, is assisting countries such as the Philippines, Morocco and Uganda in building national ID systems. Some are also adopting similar frameworks for digital payments.

India’s position in the AI race

According to Stanford University’s Institute for Human-Centered AI, India ranks third globally in AI competitiveness, behind the United States and China.

Major AI firms are expanding their footprint in the country. OpenAI and Anthropic are building operations targeting enterprise users, developers and government agencies. Companies such as Google and Meta are increasing data centre capacity to support demand for products like ChatGPT, Gemini and Claude. Nvidia Corp. has also identified India as an important market amid US export restrictions on high-end chips to China, although its chief executive withdrew from the summit citing unforeseen circumstances.

Focus on local and affordable AI models

At the summit, government-backed BharatGen is set to unveil Param2, a 17-billion-parameter AI model supporting 22 Indian languages. Sarvam AI, supported by global venture investors, will present a larger voice-first model aimed at serving India’s multilingual population.

Developers say these models are designed to lower costs and expand AI access across governance, education, healthcare and agriculture. The emphasis on affordability is intended to accelerate adoption in India and other developing markets.

However, industry observers note that limited historical investment in research and development could pose challenges. Strengthening India’s domestic research ecosystem, they argue, will be key to ensuring the country moves beyond serving as a testing ground for global AI products.

Some entrepreneurs believe India can still narrow the gap by focusing on advanced reasoning systems for science and robotics, particularly as future AI development increasingly depends on data beyond the internet.

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Madras High Court orders vigilance probe into alleged bribe in gold fraud case

The Madras High Court has ordered a vigilance probe into allegations that a senior lawyer received Rs 50 lakh in a gold trade fraud case registered by the CBI.

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The Madras High Court has directed a vigilance inquiry into allegations that a senior lawyer allegedly accepted Rs 50 lakh from accused individuals in a gold trade fraud case, purportedly to secure favourable judicial orders.

Justice Nirmal Kumar, who was hearing petitions related to the case, ordered the probe and subsequently recused himself from further proceedings.

Allegations linked to Rs 89.90 crore gold fraud case

The matter stems from a Rs 89.90 crore gold trade fraud case registered by the Central Bureau of Investigation (CBI). Two accused persons have moved the High Court seeking quashing of the case and discharge from the proceedings.

According to court records, a communication sent by a body identifying itself as the All India Lawyers Association for Justice to the judge and the Union Law Ministry alleged that a senior lawyer representing the petitioners had received Rs 50 lakh from the accused. The letter claimed the amount was meant to obtain favourable orders in the case.

Lawyer denies charges

Following receipt of the letter, the court summoned the concerned lawyer for clarification. The lawyer denied the allegations and stated willingness to cooperate with any inquiry.

The CBI’s special public prosecutor urged the court to disregard the letter, arguing that it affected the dignity of the institution and sought steps to identify the sender.

After considering the submissions, the court ordered a vigilance inquiry into the claims. Justice Nirmal Kumar then recused himself from hearing the related petitions.

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Rahul Gandhi meets farmers over India-US trade deal, BJP calls it stage-managed

Rahul Gandhi met farmer leaders over concerns surrounding the India-US trade deal, drawing sharp criticism from BJP, which termed the interaction stage-managed.

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Congress leader Rahul Gandhi met representatives of several farmer organisations at his Parliament office to discuss concerns related to the proposed India-US trade framework. The meeting has triggered sharp political reactions, with the Bharatiya Janata Party (BJP) alleging that the interaction was “stage-managed”.

According to details shared, Gandhi — who is the Leader of Opposition in the Lok Sabha — held discussions with representatives of 17 major farmer unions from across the country. The farm leaders conveyed apprehensions that the trade agreement could adversely affect cultivators, particularly those growing corn, soyabean, cotton, fruits and nuts.

They urged the need for a nationwide movement to safeguard farmers’ rights and protect their incomes from any potential impact of the agreement.

BJP alleges ‘artificial narrative’

Responding to the development, Union Minister Piyush Goyal criticised the Congress leader, terming the meeting “artificial” and “baseless”. In a video post on X, Goyal alleged that Gandhi was attempting to mislead farmers.

“Mr Rahul Gandhi has once again rolled out a stage-managed, most artificial and fake narrative,” Goyal said. He further claimed that individuals posing as farmer leaders were aligned with the Congress party and were part of an orchestrated attempt to create confusion.

The minister added that the government had fully protected the interests of farmers in the India-US trade deal and accused the opposition of provoking sentiment against the country’s economic policies.

What the India-US trade framework proposes

The interim trade agreement between India and the United States focuses on lowering tariff barriers while balancing domestic agricultural sensitivities. As part of the arrangement, the US has agreed to reduce reciprocal tariffs on Indian goods — from levels as high as 50 per cent to 18 per cent — benefiting sectors such as textiles, leather, footwear and pharmaceuticals.

The government has maintained that between 90 and 95 per cent of Indian agricultural products remain outside the scope of the agreement, ensuring protection for farmers.

The political exchange reflects broader debate over the potential implications of the trade framework, particularly for the agriculture sector.


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