economy
February 4, 2026
US-India trade deal: What we know so far
The US has announced a reduced tariff of 18% for India, nearly a year after imposing 50% rate
TL;DR
- India will reduce tariffs and non-tariff barriers against the US to zero.
- India committed to buying $500 billion worth of US energy, technology, agriculture, coal, and other products.
- The deal aims to stabilize the rupee, boost investor sentiment, and benefit the South Asian nation's economy.
- India's exports to the US will now enjoy the second-best tariff rate in Asia, after Japan.
- Sensitive dairy and agricultural goods are expected to be kept out of the trade deal's purview.
- The deal is anticipated to reduce the US agriculture trade deficit with India.
- Sectors like textiles, gems and jewelry, engineering goods, auto ancillaries, and seafood exports are expected to benefit.
- India's financial markets responded positively, with stock markets surging and the rupee climbing.
- The agreement is expected to bring clarity to order pipelines for export-driven sectors.
Continue reading
the original article