India US Trade Deal Boosts India’s Position In Asia
- JM Financial report sees India US trade deal as market positive
- Tariff cut under India US trade deal strengthens Indian currency
India has improved its position in Asia after the India US trade deal, according to a report by investment banking firm JM Financial. The report said the agreement is a positive factor for Indian markets. It also said the deal will help strengthen the Indian currency. The development follows a recent interim trade agreement signed between India and the United States.
According to the report, the India US trade deal has given India a clear edge over several Asian countries. The assessment noted that market sentiment is likely to improve because of the easing of trade tensions. Therefore, investors may see this agreement as supportive for India’s economic outlook. The report linked the trade deal directly to improved confidence in Indian markets.
JM Financial stated that the two countries recently signed an interim trade deal. Under this arrangement, the United States lifted an additional 25 percent tariff. This tariff was earlier imposed in retaliation for Russia’s failure to reduce oil imports. However, the report focused on the outcome of the decision rather than the wider geopolitical context. As a result of the rollback, tariffs on Indian products saw a sharp reduction.
Under the India US trade deal, the earlier 50 percent tariff on Indian products was cut to 18 percent. This reduction marks a significant shift in trade terms between the two countries. Meanwhile, the report highlighted that this new tariff rate is far lower than those imposed by the US on several other Asian nations. Countries mentioned in the report include Pakistan, China, Sri Lanka, and Bangladesh.
Therefore, India’s relative position in Asia has improved after the deal. The report suggested that such a differential could work in India’s favour in regional trade and exports. Also, lower tariffs could help Indian goods remain competitive in the US market. This, in turn, may support export-driven sectors.
JM Financial further said that the agreement is a positive signal for the Indian currency. It linked the expected currency strength to better trade conditions and improved investor confidence. However, the report did not provide any figures or projections. It limited its comments to the immediate impact of the deal.
Later, market participants are likely to study the full effects of the India US trade deal as more details emerge. For now, the report clearly places the agreement as a supportive development for India’s standing in Asia and its overall market outlook.
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