The US cut India’s reciprocal tariff to 18%, easing pressure on exporters and boosting market sentiment
India now enjoys a tariff advantage over peers like Vietnam and Bangladesh, despite rates staying elevated
While sensitive sectors are protected, clarity is awaited on market access and purchase commitments
Trade stress pushed India to diversify markets and accelerate deals, notably with the European Union
The deal may ease FPI outflows, support the rupee, and revive foreign investment interest
With global uncertainty persisting, India must deepen reforms, diversify exports, and build buffers