India’s Nifty 50 skyrockets 5% as U.S.-India trade deal turbocharges stocks
A guard walks past the National Stock Exchange building in Mumbai, India, on February 9, 2018.
Danish Siddiqui | Reuters
India’s benchmark Nifty 50 stock index rose 5% on open Tuesday, after New Delhi and Washington announced a long-awaited trade deal that saw a sharp cut in U.S. tariffs on Indian exports.
U.S. President Donald Trump on Monday stateside said that U.S. will cut reciprocal tariff on India to 18% from 25%. He added that India will reduce its tariff and non-tariff barriers against the U.S. to zero.
The U.S. had levied 50% tariffs on India, including a 25% levy for purchasing Russian oil. Reuters reported earlier that the overall tariff had been reduced to 18%. Trump said that during his call with Indian Prime Minister Narendra Modi, India agreed to stop buying Russian oil and instead “buy much more” from U.S.
Modi, in his post on X, said that “made in India” products will now face reduced tariffs of 18% in the U.S. while extending support for U.S. president’s efforts to usher global peace, stability and prosperity.
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