On 2 Feb 2026, India and the US cut tariffs on Indian exports from 25% to 18% and removed the penal tariff linked to Russian oil, signalling deeper trade alignment. The US is India’s largest trade partner, and labour-intensive sectors like textiles, leather, gems & jewellery and agriculture stand to gain alongside benefits from the EU FTA. With multiple global trade pacts, India strengthens its China+1 edge. The deal is positive for the INR, FPI flows and near-term equity sentiment, reinforcing India’s medium-term growth and export outlook.

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