India and the US have reached a trade deal under which US tariffs on Indian goods would be reduced from 50 per cent to 18 per cent. The agreement includes rescinding a punitive duty tied to India’s purchases of Russian oil, in exchange for New Delhi halting such imports and lowering trade and non-tariff barriers. Prime Minister Narendra Modi welcomed the move, saying it will boost “Made in India” exports and strengthen bilateral ties. While the reduced tariff gives India a competitive advantage over regional rivals such as China, Pakistan and Bangladesh, the rate remains slightly higher than those offered to US allies like the EU, Japan and South Korea. Key details, including the implementation timeline and formal notification, have not yet been announced.
EAM S Jaishankar to meet Secretary of State Rubio in Washington ahead of critical minerals ministerial
February 3, 2026 11:20 am
External Affairs Minister S Jaishankar will meet US Secretary of State Marco Rubio in Washington on Tuesday ahead of an inaugural ministerial on critical minerals. Rubio will meet Jaishankar at the State Department on Tuesday afternoon. Jaishankar is in the US from February 2-4 and will participate in the Critical Minerals Ministerial convened by Rubio on Wednesday. The meeting comes a day after US President Donald Trump announced on Truth Social that India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on India from 25 per cent to 18 per cent.
India’s seafood exports to US set to rebound after tariff cut to 18 pc: SEAI
February 3, 2026 11:18 am
India’s seafood exports to the United States are expected to recover after Washington agreed to cut tariffs to 18 per cent from 25 per cent, the Seafood Exporters Association of India (SEAI) said. Fish exports to the US fell 15 per cent by volume to 201,501 tonnes in April-November of the current fiscal year, while value declined 6.3 per cent to USD 1.72 billion from USD 1.84 billion a year earlier, SEAI General Secretary K N Raghavan said. “The field has become level again, exports should get the boost,” Raghavan said.
Rupee, stocks soar after trade deal with US
February 3, 2026 9:32 am
India’s Nifty 50 surged nearly 5%, about 100 points shy of its January record high. The rupee climbed over 1% to 90.40 per dollar in early trading. The yield on the 10-year benchmark bond fell 5 bps to 6.72%. The Nifty’s rise marked its best one-day gain in five years while the rupee had its best day since November 2022. The breakthrough follows a separate EU trade deal expected to cut tariffs on 96.6% of traded goods by value.
It will strengthen ‘Make in India’ endeavours: Jaishankar
February 3, 2026 9:29 am
External Affairs Minister S Jaishankar welcomed the India-US trade agreement, saying it will spur growth in both economies and strengthen ‘Make in India’ endeavours. In a post on X, Jaishankar said the deal “will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavors and encourage trusted technology ties.”
US-India trade deal will pave way for stronger ties: Shah
February 3, 2026 9:27 am
Union Home Minister Amit Shah said the deal will elevate the strategic partnership between the two countries and pave the way for stronger trade ties and mutual growth. In a post on X he called it “a big day for India-US relations” with business set to flourish.
Nifty, Sensex open higher hours after India-US deal
February 3, 2026 9:25 am
Sensex jumped 3,656.74 points to 85,323.20 in opening trade; Nifty surged 1,219.65 points to 26,308.05.
Deal with India will export more American farm products: US leaders
February 3, 2026 9:24 am
US leaders said the trade deal will open the Indian market to more American farm products and help counter Russian influence. Senate Foreign Relations Committee Chairman Jim Risch congratulated President Trump and said India has pledged to “buy American,” aiding US efforts to reduce support for Russia’s energy sector amid its war in Ukraine.
Tariff cut for India
February 3, 2026 9:20 am
The US has agreed to reduce tariffs on Indian goods to 18 per cent from 50 per cent under the announced deal.
Punitive duty withdrawn
February 3, 2026 9:19 am
Washington will rescind an additional 25 per cent punitive duty that had been imposed on India over its purchases of Russian oil; that duty had been stacked on top of a 25 per cent reciprocal tariff.
Key condition
February 3, 2026 9:19 am
In return, India has agreed to halt purchases of Russian oil, lower trade and non-tariff barriers, and increase imports from the United States.
Energy shift
February 3, 2026 9:17 am
President Trump said India would buy oil and energy products from the US and potentially Venezuela, along with coal and other energy supplies.
PM Modi welcomes deal
February 3, 2026 9:17 am
Prime Minister Narendra Modi said he was delighted that “Made in India” products will now face a reduced tariff of 18 per cent, calling the deal beneficial for both democracies.
Edge over Asian rivals
February 3, 2026 9:16 am
India’s 18 per cent tariff rate is lower than China’s (37 per cent) and close to or better than Pakistan’s (19 per cent) and Bangladesh’s (20 per cent), giving Indian exporters a competitive advantage.
Comparison with others
February 3, 2026 9:16 am
While India’s rate is higher than that offered to the EU, Japan and South Korea (15 per cent), it remains among the more favourable rates for major Asian economies.
US Imports Commitment
February 3, 2026 9:16 am
Trump said India committed to “buy American” at a much higher level, including over $500 billion worth of US energy, technology and agricultural products.
Implementation still unclear
February 3, 2026 9:16 am
The start date of the new tariff rates, timeline for ending Russian oil purchases and detailed terms of the agreement have not yet been officially notified.
