Stock market benchmark indices Sensex and Nifty surged in early trading session on Tuesday after India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from current 25 per cent.
The country's exports rose marginally by 0.61 per cent to $36.56 billion in January, while trade deficit widened to a three-month high of $34.68 billion, government data showed on Monday.
Rediff explains why the system, not the Budget, is the problem.
Prime Minister Narendra Modi on Tuesday announced the signing of the India-EU Free Trade Agreement (FTA), saying it accounts for 25 per cent of global GDP and one-third of global trade.
India has completely protected the interests of its agriculture and dairy sector in the India-US trade agreement.
Several farmer organisations in India are protesting the proposed India-US trade deal, expressing concerns about its impact on the agriculture sector and demanding the resignation of the Commerce Minister.
The White House has revised a fact sheet on the interim trade deal between the United States and India, removing the reference to "pulses" from the list of American products on which India would eliminate or reduce tariffs. The revised sheet also changed "committed" to "intends" regarding India's purchase of American products.
Modi's remarks came hours after the US and India agreed on a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent.
After three consecutive months of heavy selling, foreign portfolio investors (FPIs) turned net buyers in the first week of February, infusing more than Rs 8,100 crore in Indian equities, aided by improving risk sentiment, along with a trade deal with the US.
'The immediate impact for India will be very minimal as the share of Venezuela in our total overseas production is very low.'
'Trump says India will buy over $500 billion of US goods.' 'At present, India's annual imports of goods and energy from the US are under $50 billion.' 'Reaching $500 billion would likely require more than 20 years, suggesting the figure refers to a long-term aspiration rather than a near-term commitment.'
US and India will promptly implement this framework and work towards finalising the interim agreement with a view to concluding a mutually beneficial bilateral trade agreement.
India and the European Union are set to announce on January 27 the conclusion of negotiations and finalisation of a free trade agreement, which is aimed at boosting economic ties between the two regions amid disruptions in global trade due to US tariffs, an official said.
India and the US have agreed to a trade deal that will see Washington reduce reciprocal tariffs on Indian goods from 25% to 18%, according to US President Donald Trump. The deal also includes commitments from India to reduce tariffs and non-tariff barriers against the US and to increase purchases of American products.
United States President Donald Trump has brushed aside French President Emmanuel Macron's call for an emergency G7 meeting amid escalating tensions over Washington, DC's push to acquire Greenland, while Europe has warned of retaliatory trade action against US tariff threats.
Talks on the proposed trade deal between India and the United States will resume after the year-end holidays, coinciding with Sergio Gor -- a close aide of American President Donald Trump -- taking charge as the US Ambassador to India in early January, according to a person privy to the development.
Both countries commit to provide each other preferential market access in sectors of respective interest on a sustained basis
External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio discussed cooperation in trade, critical minerals, nuclear energy, and defence, reaffirming commitment to a free and open Indo-Pacific.
Opposition MPs, including members of the Congress party, staged a protest in the Parliament House complex over the India-US trade agreement, controversy surrounding former Army chief MM Naravane's unpublished memoir, and the suspension of eight MPs.
Over the years, India-EU ties have grown, and covered trade, investment, climate change, science and technology, space, digital, mobility, and connectivity.
United States President Donald Trump on Wednesday said he has great respect for his 'friend' Prime Minister Narendra Modi and they are going to have a good trade deal, according to a media report.
The India-US trade deal has offered a much-needed breather for the Indian information technology (IT) industry, which has been grappling with global macroeconomic uncertainty and subdued client spending over the past few years.
Finance Minister Nirmala Sitharaman on Wednesday said global trade is increasingly "getting weaponised" through tariffs and other measures, and India will have to negotiate its way carefully. She said that the overall strength of the economy will give the country an added advantage.
'I don't think we should ever negotiate with deadlines or hard stops because we tend to make mistakes then.'
The India-US ties witnessed a major downturn after President Trump slapped a whopping 50 per cent tariff on Indian goods, including a 25 per cent punitive levy over Russian oil purchases.
The country's exports rose 1.87 per cent to $38.5 billion in December 2025 despite global economic uncertainties, though an increase in imports led to a marginal widening of the trade deficit to $25 billion.
Under the defence partnership, India and the UAE are eyeing defence industrial collaboration and cooperation in advanced technologies, cyberspace training, special operations, interoperability of their militaries and counter terrorism.
Trump said that the decision would be "immediately" in effect and that the "order is final and conclusive."
From the 30-Sensex firms, InterGlobe Aviation, Sun Pharma, Asian Paints, Reliance Industries, Hindustan Unilever, and Tata Steel were among the biggest laggards. However, Trent, UltraTech Cement, Maruti, and Power Grid were among the gainers.
From the 30-Sensex firms, Tata Steel, Kotak Mahindra Bank, Reliance Industries, Axis Bank, Titan and Trent were among the biggest gainers. However, Tata Consultancy Services, Tech Mahindra, Infosys, Bajaj Finance and Sun Pharma, were the laggards.
US Commerce Secretary Howard Lutnick claims a trade deal with India failed because Prime Minister Narendra Modi did not call then-President Donald Trump, despite requests.
Prime Minister Narendra Modi and US President Donald Trump discussed enhancing economic ties and a potential trade deal during a phone conversation.
'There are very few issues and a political call needs to be taken about some of them.'
Algo trading should be segregated in a separate account with only risk capital deployed.
Putin's State visit will centre on fixing the huge India-Russia trade imbalance, with both sides pushing to lower duties, ease non-tariff barriers, and seal a landmark mobility pact to send more Indian workers to Russia.
The death of a booth level officer in West Bengal due to cardiac arrest has ignited a political battle between the ruling TMC and the BJP, with accusations of workload pressure and politicization of the tragedy.
The Indian rupee, swaying through multiple headwinds, tiding over global trade disruptions and massive foreign fund outlfows, is unlikely to arrest its descent until tariff impact overhangs, notwithstanding robust domestic macroeconomic tailwinds. The Reserve Bank of India (RBI), which sees the rupee's depreciation as a silver bullet to offset the tariff shock, expects the currency to find its stable course once India reaches a trade deal with its largest trading partner, the US.
Tensions escalated at Jawaharlal Nehru University (JNU) following a clash between student groups aligned with the Left and Right, each accusing the other of violence during a protest march.
'Raising the retrenchment, layoff and closure threshold to 300 workers for prior government permission enables hire-and-fire in more than 90 per cent of the Indian workplaces. More than 12,00,000 disputes are now pending for adjudication with an average disposal period ranging from 3 to five years for more than 75 per cent of the disputes.'
Next week's three-nation foreign tour of Prime Minister Narendra Modi will see India and Oman sign a free trade deal. The visit will also pave the way for agreements with Ethiopia and Jordan to increase India's bilateral trade and investments.
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