New York/Washington, Feb 4 (PTI) The White House has hailed a new trade agreement with India, saying the country has committed to “no longer” purchasing Russian oil, with Prime Minister Narendra Modi also agreeing on investments of USD 500 billion across key American sectors.

These remarks were made by White House Press Secretary Karoline Leavitt on Tuesday.

"The President struck another great trade deal with India. He spoke with Prime Minister Modi directly. They share a very good relationship. India is committed to not only no longer purchasing Russian oil, but buying oil from the United States, also perhaps from Venezuela too, which we know will now have a direct benefit on the United States and the American people,” Leavitt told reporters Tuesday.

She further said that in addition to that, Prime Minister Modi “committed to $500 billion of investments into the United States, including for transportation, for energy and for agricultural products as well. So this is another great trade deal thanks to President Trump.” Earlier, speaking to Fox News about the India-US trade deal, Leavitt said the two leaders had a “great call” on Monday, following which the bilateral trade deal was announced.

“...when it comes to Prime Minister Modi, I know he (Trump) particularly enjoys their relationship and has a deep respect for the Prime Minister and for his country of India.

“They had a great call. It was very productive yesterday, and they struck a deal in which India has agreed to stop purchasing Russian oil to buy more American oil from the United States of America, and potentially from Venezuela too,” she said.

Leavitt added that Trump and his national security team are “now dictating” the commerce of Venezuela and those oil sales.

“So this directly benefits the American people as well. And in addition, India has agreed to invest more in the United States because of President Trump's call to action on that phone call yesterday. Prime Minister Modi committed to USD 500 billion of purchases of US energy, transportation, and agricultural products,” she said.

Leavitt said the US tariff on India will now be at 18 per cent, but American exports to India will face a tariff of 0 per cent, so this is a great deal and a huge win for American workers, businesses and consumers alike.” The Trump administration had imposed 50 per cent tariffs on India, including 25 per cent for Delhi’s purchases of Russian oil.

In a Truth Social post on Monday, Trump had said that, effective immediately, the two sides agreed to a trade deal under which the US will lower its reciprocal tariff imposed on India from 25 per cent to 18 per cent. India will also move forward to reduce its tariffs and non-tariff barriers against the United States to “zero".

“The Prime Minister also committed to ‘BUY AMERICAN’, at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products.

“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people who GET THINGS DONE, something that cannot be said for most,” Trump said.

Modi said it was wonderful to speak with his “dear friend" Trump.

"Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said.

"When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights,” Modi said. PTI YAS AMS

India-U.S. trade deal: India to stop buying Russian oil and commit $500 billion to U.S. purchases. India agreed to stop purchasing Russian oil and to direct substantial purchases to the United States (and potentially Venezuela), alongside a reported USD 500 billion commitment to buy U.S. energy, transportation, and agricultural products. The announced arrangement includes reciprocal tariff adjustments-U.S. tariffs on India set at 18% and India reducing tariffs and non-tariff barriers on U.S. exports to zero-and links sovereign procurement shifts with large-scale commercial and investment commitments.