Indian industry and financial markets cheered a long-awaited deal between New Delhi and Washington to cut the highest US tariff rate imposed on any major economy, even as analysts cautioned that key details remained unclear.
News of the overnight agreement lifted India’s previously underperforming markets. The blue-chip Nifty 50 index rose 2.8 per cent on Tuesday, trimming its year-to-date decline to 1.3 per cent, while the rupee recorded its biggest one-day gain in more than three years, strengthening 1.2 per cent against the dollar.
The rally came after US President Donald Trump indicated that the US and India had reached an agreement reducing Washington’s 50 per cent tariffs on Indian imports, some of the highest levied by his administration on any country during his second term.