U.S. President Donald Trump and Indian Prime Minister Narendra Modi have agreed on a bilateral trade deal that reduces U.S. tariffs on Indian products to 18% from previously higher levels.
According to the agreement announced by the White House, India has also committed to stopping the import of Russian oil and lowering trade barriers for U.S. exports as part of a broader effort to deepen economic ties between the two countries.
The revised tariff framework will see U.S. duties on Indian goods set at 18%, down from rates that had included punitive measures tied to India’s earlier purchases of Russian crude. In turn, India is expected to increase purchases of U.S. energy and other products.
The announcement was followed by a positive reaction in global financial markets. Indian stock indices and the rupee were poised for gains, and major sectors such as banking and technology saw improved investor sentiment on expectations of enhanced trade flows.
Market analysts note that the deal is likely to attract foreign investment and support economic growth, with financial instruments such as the Nifty 50 and Sensex rising sharply in early trading following news of the agreement.
The pact comes amid broader developments in international trade, including other agreements that India has pursued with major economic blocs. Negotiators said the changes aim to unlock mutual opportunities in energy, technology, agriculture, and industrial goods while reinforcing long-term strategic cooperation.
Last modified: February 3, 2026
