India-US trade deal Live: Indian equity markets surged in early trade on Tuesday after India and the United States reached a trade agreement under which Washington will reduce reciprocal tariffs on Indian goods to 18 per cent from 25 per cent. The benchmark BSE Sensex jumped over 3,600 points at the open, while the NSE Nifty rose more than 1,200 points, reflecting strong investor optimism.
The rupee also strengthened sharply, appreciating 119 paise to 90.30 against the US dollar in early trade. Forex dealers said the tariff cut improves India’s relative competitiveness and could revive foreign institutional investor (FII) inflows after a prolonged selling phase.
US President Donald Trump on Monday announced a long-awaited trade deal with New Delhi, cutting tariff rates on Indian exports from 25% to 18% and effectively scrapping the additional 25% punitive duty. Trump said the move followed India’s agreement to stop buying Russian oil.
In a social media post shortly after concluding a call with Prime Minister Narendra Modi, Trump said he was announcing the deal “out of friendship and respect for PM Modi and, as per his request, effective immediately”, adding that “our amazing relationship with India will be even stronger going forward”.
Prime Minister Narendra Modi confirmed the agreement minutes later, writing: “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi added, praising Trump’s leadership as “vital for global peace, stability, and prosperity” and reaffirming India’s full support for his peace efforts.
Trump later echoed the sentiment on social media, saying, “Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most.” Track TOI’s Live coverage for all the details and analyses:
0 Comments