Sensex Rise: After nearly a week-long bloodbath on D-Street, benchmark indices opened in green on Friday. However, to investors' dismay, markets erased all gains following trade tariff concerns after the recent meet between President Trump and Prime Minister Modi.
While benchmark indices fell marginally, both BSE small-cap and mid-cap indices were down by over 1%.
While the US President continues to stay firm on his tariff stance, the nation has inked a 'mutually beneficial' trade deal with India with a plan to push annual trade to $500 billion by 2030. During the media briefing, trump announced that the two nations had agreed on a deal wherein India would import more US oil and gas to narrow down Washington's trade deficit with New Delhi.
Issues relating to trade and tariffs figured extensively in a meeting between Prime Minister Narendra Modi and Trump that took place hours after the US President announced a new reciprocal tariff policy for all the trading partners of the US.
The bilateral trade between India and the US was around $130 billion last year and the US trade deficit stands at around $45 billion at present.
The two leaders demonstrated mutual commitment to address bilateral trade barriers, according to officials.
Tariff Woes Continue
While optimism largely remains positive, Trump has already made it clear that the US will impose a reciprocal tax on India.
"Whatever India charges, we will charge them," Trump said on tariff, adding "We are being reciprocal with India."
In his remarks to the press, Trump called import duties imposed by India on certain US products "very unfair" and "strong".
The statement said the US welcomed India's recent measures to lower tariffs on US "products of interest" such as motorcycles, ICT (Information and Communication Technology) products and metals, as well as measures to enhance market access for US agricultural products, like duck meat, and medical devices.
India also expressed appreciation for Washington's measures to enhance exports of Indian mangoes and pomegranates to the US.
Both sides also pledged to collaborate to enhance bilateral trade by increasing US exports of industrial goods to India and Indian exports of labour-intensive manufactured products to the US.
The two sides will also work together to increase trade in agricultural goods, the joint statement said.
Mutually-Beneficial Trade Deal
Modi and Trump committed to drive opportunities for US and Indian companies to make greenfield investments in high-value industries in each other's countries.
In this regard, the leaders welcomed ongoing investments by Indian companies worth approximately $7.35 billion, such as those by Hindalco's Novelis in finished aluminium goods at their state-of-the-art facilities in Alabama and Kentucky; JSW in steel manufacturing operations at Texas and Ohio; Epsilon Advanced Materials in the manufacture of critical battery materials in North Carolina.
These investments support over 3,000 high-quality jobs for local families, according to the joint statement.
(With inputs from PTI)
