US, India Seal Trade Deal: Indian indices, including Nifty 50, Bank Nifty and Sensex, witnessed a significant surge on Tuesday during the early hours following the much-awaited trade deal between India and the United States on Monday. US President Donald Trump took to Truth Social and announced the major development following a call with Prime Minister Narendra Modi. Trump stated that Washington will ‘charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent’. This reduction will benefit India’s IT sector, auto industry, garments and many other industries. Because of the tariff removal, over two dozen companies, including Tata Motors, Avanti Foods, Infosys, and SRF, are going to benefit.
US, India Seal Trade Deal: What Did Donald Trump Say?
After talking to PM Modi on phone, Trump took to Truth Social and wrote, “It was an honour to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and a powerful and respected leader of his country. Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent.”
It is to be noted that President Trump and PM Modi had a telephonic conversation but no details were shared by either government. US ambassador to India Sergio Gor took to X and wrote ‘stay tuned’.
Nifty Jumps 750 Points, Sensex Opens 2,400 Higher
The Indian stock markets opened in ‘dark green’ on Tuesday hours after the much-awaited India-US trade deal. Nifty immediately jumped 750 points, while Sensex opened 2,400 points higher in the early trading hours. This market sentiments has changed overnight after Washington announced to cut its tariff on Indian goods to 18 percent as New Delhi halted Russian crude oil purchases.
US, India Seal Trade Deal: How Much Business Of Which Company Depends On US?
Textile Industries – Export/Exposure Share (%)
| No. | Company | Share (%) |
|---|---|---|
| 1 | Indo Count Industries | 70% |
| 2 | Kitex | 70% |
| 3 | Gokaldas Exports | 67% |
| 4 | Pearl Global | 64% |
| 5 | Welspun India | 61% |
| 6 | Shadow Shadow | 60% |
| 7 | Trident | 28% |
| 8 | Vardhman Textiles | 22% |
| 9 | SP Apparels | 22% |
| 10 | Arvind | 14% |
| 11 | KPR Mills | 9% |
Seafood Sector – Share (%)
| No. | Company | Share (%) |
|---|---|---|
| 1 | APEC Frozen Foods | 63% |
| 2 | Waterbase | 40% |
| 3 | Avanti Foods | 14% |
Auto Sector – Share (%)
| No. | Company | Share (%) |
|---|---|---|
| 1 | Gold BLW | 40% |
| 2 | Ramkrishna Forgings | 27% |
| 3 | Bharat Forge | 25% |
| 4 | Tata Motors | 23% |
| 5 | Samvardhana Motherson | 18% |
| 6 | Balkrishna Tyres | 18% |
| 7 | Sanmar/“Sansere” Engineering* | 9% |
| 8 | Apollo Tyres | 3% |
Chemical Sector – Share (%)
| No. | Company | Share (%) |
|---|---|---|
| 1 | UPL | 20–25% |
| 2 | SRF | 20% |
Consumer Stocks – Share (%)
| No. | Company | Share (%) |
|---|---|---|
| 1 | LT Foods | 39% |
| 2 | Tata Consumer Products | 12% |
| 3 | KRBL | 10% |
US-India Trade Deal Announcement: Five Key Points
Major Tariff Cuts: The immediate result of the trade deal is a major cut in tariff on Indian goods entering US. A White House official told news agency Reuters that the Trump administration has reduced the tariff on Indian imports to 18 percent, earlier it was 25 percent.
Following the announcement, much higher duties will be replaced, bringing clarity for Indian exporters who had been bracing for trade disruption.
US Drops Additional 25% Penalty Over Russian Oil: Another major decision was that Washington has dropped the additional 25 percent tariffs which it imposed on Indian goods over India’s purchase of Russian oil.
Trump wrote on Truth Social that PM Modi had agreed “to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela.”
August 2025 Tariff Escalation To Be Rolled Back: The development reverses August last year’s escalation when White House imposed 50 percent tariffs on Indian goods sent to America over New Delhi’s continued purchases of Russian crude oil.
The decision impacted sectors like – auto components, engineering goods, textiles, and chemicals which depend heavily on American market.
India To Buy Over USD500 Billion Worth Of US Goods: Following the tariff relief the PM Modi assured large-scale purchases from the US, Trump said.
The US President stated that New Delhi agreed to buy “over USD500 billion dollars of US energy, technology, agriculture, coal and many other products.
PM Modi Thanked Trump For Trade Deal: PM Modi thanked President Trump “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 percent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” he said.
