'Devil in the details': India-U.S. deal raises hopes for a reset — but the fine print remains unclear

Core Points - The U.S. and India have announced a trade deal aimed at improving bilateral relations after a period of tension [1] - The deal includes a reduction of U.S. tariffs on India from 25% to 18% and a commitment from India to purchase $500 billion in U.S. products [2][3] - There are concerns regarding the lack of details and a clear timeline for the implementation of the agreement [1][5] Trade Agreement Details - The U.S. will lower reciprocal tariffs on India to 18% from 25% and waive an additional 25% tariff on Indian oil purchases [2] - India is expected to eliminate tariffs and non-tariff barriers on U.S. goods to zero [2] - The total goods and services trade between the U.S. and India rose over 8% to $212.3 billion in 2024, with U.S. goods exports to India increasing by 3% to $41.5 billion and services exports surging 16% to $41.8 billion [6] Strategic Context - Relations between the U.S. and India deteriorated during Trump's second term due to various geopolitical tensions, including issues related to Pakistan and tariffs on Russian oil [4] - Experts express skepticism about India's commitment to the $500 billion target and the clarity of the Russian oil-related commitments [5]