New Delhi: The trade deal with the US that came through after many hiccups and months of negotiations is the "best in the neighbourhood", Union minister Piyush Goyal said today.

The deal was announced yesterday -- first by US President Donald Trump and then by Prime Minister Narendra Modi who thanked him. 

While the fine print is yet to be announced, Trump, in a post on his social media account Truth Social, said India and the US have "agreed to a Trade Deal" under which the US will cut reciprocal tariff from 25 per cent to 18 per cent. 

This is one of the lowest tariffs the US has announced for competing economies and way lower than India's neighbours -- including China and Pakistan -- are paying. 

China is currently paying 37 per cent Bangladesh 20 per cent and Pakistan 19 per cent. 

Developed economies like the EU, Japan, South Korea, and the UK enjoy even lower rates.

While Trump claimed that the deal will be accompanied by India putting a stop to the purchase of Russian oil, neither India nor the US has issued any details on when it would come into effect. Russia has also not issued any statement on the matter. 

Source: NDTV