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US tariff cut to 18% is positive signal for Indian exporters, says Sitharaman

Nirmala Sitharaman says India’s exports could recover after the US reduced tariffs on Indian goods to 18%, restoring competitiveness in key sectors.

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Nirmala Sitharaman

India’s exports to the United States are expected to gain momentum following Washington’s decision to reduce tariffs on Indian goods to 18%, Finance Minister Nirmala Sitharaman said on Tuesday, describing the move as a “good auguring” for exporters.

Speaking in an interview to media, Sitharaman said the tariff reduction would help Indian exporters regain competitiveness in the US market, particularly after the sharp impact of punitive duties imposed last year.

“So, actually our exports will pick up now, that is my expectation,” she said, adding that exporters had also identified alternative markets during the period of elevated tariffs and would continue operating in them.

Tariff rollback brings relief after export setback

The US had imposed steep tariffs of up to 50% on Indian goods last year, which significantly raised landed costs and squeezed exporter margins. Several sectors, including steel, aluminium, textiles, engineering goods and certain agricultural products, were affected as US buyers diverted orders to other suppliers.

On Monday, US President Donald Trump announced a reduction in tariffs on Indian goods to 18% as part of a broader trade understanding. The agreement includes India lowering trade barriers and committing to stop purchases of Russian oil, instead sourcing energy from the US and potentially Venezuela.

On implementation, the revised tariff structure would bring duties on Indian exports broadly in line with other Asian economies, where rates range between 15% and 19%.

Improved competitiveness against regional rivals

The 18% tariff undercuts duties imposed on key regional competitors such as Vietnam and Bangladesh, which face tariffs of around 20%. This is expected to restore India’s price advantage in the US market.

Labour-intensive sectors such as apparel, footwear and jewellery are likely to see the most immediate benefit. These segments had witnessed a sharp fall in orders after the 50% tariffs imposed in August severely dented competitiveness.

Earlier in the day, Sitharaman described the development as “good news for #MadeInIndia products” in a social media post, noting that Indian goods would now face reduced duties in the US market.

Trade and capital flow impact

Earlier punitive tariffs had also weighed on bilateral trade. India’s trade surplus with the US shrank by an average of USD 2.5 billion per month between September and December 2025 compared to the January–August period, according to research cited in the report.

Investor sentiment had weakened as well, with foreign investors pulling out nearly USD 14 billion in equities since July 2025.

The rollback of the additional 25% punitive tariff linked to Russian oil purchases effectively lowers the applied tariff on Indian exports from 50% to 18%, offering significant relief to exporters and improving prospects for a recovery in trade flows.

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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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Madras High Court

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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Rahul-Gandhi

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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Ex-shooter of Mukhtar Ansari gang shot dead in Barabanki, 15 rounds fired

A former shooter linked to Mukhtar Ansari’s gang was killed in Barabanki after attackers fired 15 rounds at his vehicle during a 10-minute assault.

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A former shooter linked to the gang of Mukhtar Ansari was shot dead in Uttar Pradesh’s Barabanki district after unidentified attackers opened fire on his vehicle.

The deceased, Shoaib alias Bobby, had earlier been associated with Ansari’s criminal network. He was also an accused in the 1999 murder case of Lucknow jailer RK Tiwari.

Attack in Asaini area

According to police officials, the incident took place in the Asaini area when Shoaib was travelling from Barabanki towards Lucknow. A total of 15 rounds were fired at his vehicle during the attack.

Authorities said the firing continued for nearly ten minutes. Eyewitnesses reported hearing multiple gunshots as the vehicle came under sustained fire, creating panic in the locality. The scale of the assault and the number of bullets discharged indicate that more than one attacker may have been involved, police added.

Background of the deceased

Shoaib Bobby had been identified in the past as a shooter for the Ansari gang. He was named as an accused in the 1999 killing of jailer RK Tiwari in Lucknow.

About Mukhtar Ansari

Mukhtar Ansari, who was 63 at the time of his death in 2024, had been booked in 65 criminal cases over the years, including charges of murder and extortion. Despite his criminal record, he was elected five times as a Member of the Legislative Assembly from different political parties.

Born in 1963 into an influential family, Ansari entered organised crime during a period when contract mafia activities were prevalent in parts of Uttar Pradesh. From 2005 until his death, he remained lodged in various jails in Uttar Pradesh and Punjab.

Ansari died of cardiac arrest after being hospitalised in 2024. According to a medical bulletin issued in Hindi, he was shifted from jail in Banda to Rani Durgavati Medical College at around 8.25 pm after complaining of vomiting and being found unconscious.

Police are continuing their investigation into the Barabanki shooting.

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