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India-US Deal: Not A Blanket Cut, But A Big Boost | Fine Print Matters

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2026年2月3日
1 min read
Automobile Components Big Blanket Boost cut deal Fine Indian Economy IndiaUS matters Pharma Sector Print Semiconductors Trade Tariffs

India-US Deal: Not A Blanket Cut, But A Big Boost | Fine Print Matters

The India-US trade deal has triggered a sharp shift in sentiment, but experts caution that it is not a blanket tariff reduction across all sectors. While future-facing industries like pharmaceuticals, electronics and semiconductors were already largely exempt, the key impact will be felt across the remaining export basket. Early indications suggest nearly 90% of India’s exports could fall under the new 18% tariff regime – a level seen as a positive surprise. The deal has eased concerns around the rupee and improved confidence in the broader economic outlook. More importantly, it reinforces the case for continued tariff rationalisation and structural reforms. With recent liberalisation in sectors like insurance and nuclear power, the challenge now is to sustain reform momentum even without external pressure, keeping India firmly on the path to high-income growth.

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