India-US Trade Deal: Big Shake-up Expected in Key Sectors, FIIs May Return
Economy
C
CNBC Awaaz•03-02-2026, 08:45
India-US Trade Deal: Big Shake-up Expected in Key Sectors, FIIs May Return
- •India and the US have reached a trade deal, with the US agreeing to reduce tariffs on Indian exports from 25% to 18% and remove the 25% reciprocal tariff.
- •India will zero out tariffs and non-tariff barriers on US imports, potentially agreeing to purchase up to $500 billion in goods from the US in energy, technology, and agriculture sectors.
- •Labor-intensive sectors like textiles and gems & jewelry are expected to benefit significantly, boosting exports and job creation.
- •Agricultural sectors in India may face pressure due to potential tariff reductions, leading to cheaper imports but possibly impacting farmers' incomes.
- •The deal is seen as positive for market sentiment, potentially increasing capital flows, strengthening the rupee, and attracting FIIs back to India.
Why It Matters: The India-US trade deal promises significant tariff reductions, boosting exports and potentially attracting FIIs.
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