PRE-MARKET INDIAN STOCKS NEWS: US and India announced an interim trade agreement on Friday

The announced interim trade agreement between the US and India marks a significant thaw in trade relations, with India reducing tariffs on US goods and committing to substantial purchases from the US.

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PRE-MARKET INDIAN STOCKS NEWS: US and India announced an interim trade agreement on Friday

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Other News

US and India announced on Friday that they reached a framework for an interim agreement regarding reciprocal and mutually beneficial trade, in which India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, while the US will apply a reciprocal tariff rate of 18% and will remove tariffs on certain aircraft and aircraft parts. India and the US will significantly increase trade in technology products, and India intends to purchase USD 500bln of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years. Furthermore, India agreed to eliminate restrictive import licencing procedures that delay market access for, or impose quantitative restrictions on, US ICT goods. (Newswires)

Context

This development is likely to boost bilateral trade and improve market sentiment, particularly in sectors like technology and energy. Expect heightened activity in the equities market, especially for companies directly involved in trade with the US, as well as potential impacts on the broader commodities market due to increased energy imports from the US.

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