In a major diplomatic move, India and the US have finally managed to work out a historic trade deal, which will see the latter slash the reciprocal tariff on Indian goods to 18 per cent.

Trump announced that India has agreed to stop buying Russian oil and increase purchases from the US after months of trade pressure and tariff threats over New Delhi's energy ties with Moscow.

Trump also announced a cut in tariffs on Indian goods from 50% to 18%.