A New Era of Trade: The US-India Deal Elevates India Export and Investment Competitiveness Along with the EU-India
Finally, the long-awaited exhale has come for India's growth and the rupee. The US and India announced a staggering tariff reduction from 50% to 18%. This will provide immediate respite to the Indian economy and its assets, which have been dragged down by the previous 50% tariff affecting USD 45 billion worth of goods, or 1.2% of GDP, primarily in labor-intensive sectors such as textiles and gemstones. In 2025, India performed the worst in Asia in terms of exports, as oil and labor-intensive exports suffered. The rupee, short on USD due to slowing service exports, beleaguered merchandise expor...