India and the US have reached a new trade deal under which US tariffs on Indian goods would be reduced from 50 per cent to 18 per cent. The agreement includes the withdrawal of a punitive duty imposed over India’s purchases of Russian oil, in exchange for New Delhi halting such imports and lowering trade barriers. Prime Minister Narendra Modi welcomed the move, saying it would boost “Made in India” exports and strengthen bilateral ties. The reduced tariff gives India a competitive advantage over regional rivals such as China, Pakistan and Bangladesh, though the rate remains slightly higher than those offered to US allies like the EU, Japan and South Korea. Key details, including the implementation timeline and formal notification, are yet to be announced.PM completely surrendered to appease Trump’: CongressFebruary 3, 2026 2:15 pmThe Congress on Tuesday demanded that the Modi government should take Parliament into confidence on the details of both the EU and US trade deals, while alleging that Prime Minister Narendra Modi has “completely surrendered” to appease US President Donald Trump at the cost of India’s farmers. Congress general secretary in-charge communications Jairam Ramesh hit out at the government over the announcement of the India-US trade deal, saying “India stands diminished by this unfortunate sequence of events.”EAM S Jaishankar to meet Secretary of State Rubio in Washington ahead of critical minerals ministerialFebruary 3, 2026 11:20 amExternal Affairs Minister S Jaishankar will meet US Secretary of State Marco Rubio in Washington on Tuesday ahead of an inaugural ministerial on critical minerals, the meeting coming as President Donald Trump announced a trade deal with India. Rubio will meet Jaishankar at the Department of State on Tuesday afternoon. Jaishankar is on a visit to the United States from February 2-4 and will participate in the Critical Minerals Ministerial convened by Rubio on Wednesday. During the visit, Jaishankar will also hold meetings with senior members of the US administration, the Ministry of External Affairs had said. The meeting between Jaishankar and Rubio will come just a day after US President Donald Trump announced on Truth Social that India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on Delhi from 25 per cent to 18 per cent.India’s seafood exports to US set to rebound after tariff cut to 18 pc: SEAIFebruary 3, 2026 11:18 amIndia’s seafood exports to the United States are expected to recover, following months of declining shipments, after Washington agreed to cut tariffs to 18 per cent from 25 per cent, the Seafood Exporters Association of India (SEAI) said on Tuesday. Fish exports to the US fell 15 per cent by volume to 201,501 tonnes in the April-November period of the current fiscal year, while value declined 6.3 per cent to USD 1.72 billion from USD 1.84 billion a year earlier, SEAI General Secretary K N Raghavan said. “The field has become level again, exports should get the boost,” Raghavan told PTI.Rupee, stocks soar after trade deal with USFebruary 3, 2026 9:32 amIndia’s benchmark stock index, the Nifty 50, surged nearly 5%, about 100 points away from its record high hit in January. The rupee climbed over 1% to 90.40 per dollar in early trading. The yield on the country’s 10-year benchmark bond declined 5 bps to 6.72% The Nifty’s rise put it on course for the best one-day gain in five years while the rupee was on track for its best day since November 2022. The trade breakthrough is expected to alleviate the persistent drag, with investors expecting a bounce-back in foreign sentiment and flows into Indian assets. The breakthrough with the U.S. comes less than a week after India signed a long-awaited trade deal with the European Union that is expected to eliminate or reduce tariffs on 96.6% of traded goods by value.It will strengthen ‘Make in India’ endeavours: JaishankarFebruary 3, 2026 9:29 amExternal Affairs Minister S Jaishankar on Tuesday welcomed the India-US trade agreement, saying it will spur growth in both economies and strengthen the country’s ‘Make in India’ endeavours. Jaishankar, who is on a three-day visit to the US to attend a Washington-led ministerial meeting on critical minerals supply chain, said he “welcomed the announcements on bilateral trade”. India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi. In a post on ‘X’, Jaishankar said, “This will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavors and encourage trusted technology ties.”US-India trade deal will pave way for stronger ties: ShahFebruary 3, 2026 9:27 amUnion Home Minister Amit Shah has said that the US-India trade deal will elevate the strategic partnership between the two countries, paving the way for stronger trade ties and mutual growth. In a post on X late Monday, Shah said the deal will greatly benefit both nations and their people, with business between India and the US set to flourish further. “A big day for India-US relations as the trade deal has been locked with a significantly reduced tariff of 18 per cent, paving the way for stronger trade ties and mutual growth,” he said.Nifty, Sensex open higher hours after India-US dealFebruary 3, 2026 9:25 amSensex jumps 3,656.74 points to 85,323.20 in opening trade; Nifty surges 1,219.65 points to 26,308.05.Deal with India will export more American farm products: US leadersFebruary 3, 2026 9:24 amTop American leaders said the trade deal announced by US President Donald Trump with “close partner” India will export more farm products from America to the massive Indian market and the agreement will also help counter Russian aggression. “Congratulations to President Trump for a superb accomplishment on today’s trade agreement with India,” Senate Foreign Relations Committee Chairman Senator Jim Risch said in a post on X Monday. He said he is “very glad to learn that the world’s oldest and largest democracy has agreed to reduce trade barriers with the United States.” Describing India as a “close partner” of the US, with a prominent diaspora in America, Risch said New Delhi is an integral partner in countering China’s “malign influence” in the Indo-Pacific. “Now, under this new agreement India has pledged to buy American. It will also help the US counter Russian aggression and in its work to bring an end to Russia’s war against Ukraine by cutting off India’s support of the Russian energy sector,” Risch said.Tariff cut for IndiaFebruary 3, 2026 9:20 amThe United States has agreed to reduce tariffs on Indian goods to 18 per cent from 50 per cent under a new trade deal announced by US President Donald Trump.Punitive duty withdrawnFebruary 3, 2026 9:19 amWashington will rescind an additional 25 per cent punitive duty imposed on India over its purchases of Russian oil, which had been stacked on top of a 25 per cent reciprocal tariff.Key conditionFebruary 3, 2026 9:19 amIn return, India has agreed to halt purchases of Russian oil, lower trade and non-tariff barriers, and increase imports from the United States.Energy shiftFebruary 3, 2026 9:17 amPresident Trump said India would now buy oil and energy products from the US and potentially Venezuela, along with coal and other energy supplies.PM Modi welcomes dealFebruary 3, 2026 9:17 amPrime Minister Narendra Modi said he was delighted that “Made in India” products will now face a reduced tariff of 18 per cent, calling the deal beneficial for both democracies.Edge over Asian rivalsFebruary 3, 2026 9:16 amIndia’s 18 per cent tariff rate is lower than China (37 per cent) and close to or better than Pakistan (19 per cent) and Bangladesh (20 per cent), giving Indian exporters a competitive advantage.Comparison with others:February 3, 2026 9:16 amWhile India’s rate is higher than that of the EU, Japan and South Korea (15 per cent), it remains among the most favourable for major Asian economies.US Imports CommitmentFebruary 3, 2026 9:16 amTrump said India committed to “buy American” at a much higher level, including over $500 billion worth of US energy, technology and agricultural products.Implementation still unclear:February 3, 2026 9:16 amThe start date of the new tariff rates, timeline for ending Russian oil purchases and detailed terms of the agreement have not yet been officially notified.