The Mahindra Group has welcomed the India–US trade deal, calling it a major step forward in strengthening bilateral trade and investment ties between the two
countries and a strong positive for India’s long-term growth story. Dr Anish Shah, Group CEO and Managing Director of the Mahindra Group, said the agreement would improve business confidence, boost growth momentum and create a more predictable environment for investments. "The Mahindra Group welcomes the India–US trade deal, which marks a significant step forward in strengthening bilateral trade and investment ties. The immediate reduction in reciprocal tariffs on Indian exports from 50 per cent to 18 per cent, along with the commitment to progressively lower tariff and non-tariff barriers, will boost growth momentum and improve the predictability businesses need to invest with confidence," Shah said. "With the Indian economy on a strong growth trajectory, this deal adds meaningful momentum to India’s growth ambitions," he added.
Key changes in the trade deal
The Donald Trump-led US administration has decided to drop the additional 25 per cent tariff imposed on Indian imports and reduce the country-specific tariff to 18 per cent from 25 per cent. The decision follows an agreement between India and the United States after India committed to stop purchasing Russian oil, a move that had earlier triggered trade pressure from Washington.
According to The White House, the US will withdraw the extra 25 per cent tariff that was imposed specifically to pressure India over its Russian oil purchases. The decision came after a phone conversation between US President Donald Trump and Prime Minister Narendra Modi, during which the two leaders finalised the trade understanding.
President Trump later announced the changes in a post on Truth Social, calling it a major shift in bilateral trade relations. He said the US reciprocal tariff on Indian goods would immediately fall to 18 per cent, linking the move to stronger energy cooperation and broader geopolitical objectives.
Markets and rupee respond positively
The impact of the trade deal was also clearly visible in financial markets, with sentiment improving across equities and currencies.
The Indian rupee rebounded sharply by over 1 per cent on Tuesday, opening stronger at 90.40 against the previous close of 91.50, marking one of its strongest single-day moves in recent months.
Moreover, Indian headline indices -- Sensex and Nifty 50 -- also traded on bullish note, with surging 5 per cent each.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
