India and the United States have recently reached an arrangement on an interim trade deal, although formal signing is still pending. Under this new agreement, tariffs previously set at 50% have been significantly reduced to a maximum of 18% on goods exported from India to the U.S. This adjustment is expected to make Indian products more competitively priced compared to offerings from countries like China, Pakistan, and Bangladesh.

The implications of the reduced tariffs are substantial for Indian businesses, particularly for small and medium enterprises which will benefit from lower export costs, ultimately allowing them to offer more attractive prices in the U.S. market. In addition to boosting trade, this move is poised to create new job opportunities for women and youth in India, as increased export activities often correlate with more employment avenues in various sectors.

The article lists several categories and products that will be affected by the 18% tariff, including diamonds and jewelry, textiles such as silk and cotton, and agricultural products. The reduction in tariffs is part of a broader strategic effort to enhance India's trade position with the U.S. and foster economic growth by aligning with the global market dynamics.