India US Trade Deal LIVE Updates: Why Trump announced trade deal first? Goyal responds

India has agreed to buy petroleum, defence goods, and aircraft from the US, while partly opening up its highly-guarded agriculture sector under a trade deal, according to a government official, as the two sides reconcile after months of tensions.

President Donald Trump announced a trade deal with India on Monday that slashes US tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.

Trump said India ‍agreed to ⁠buy more American goods with purchases rising to as much as $500 billion including energy, coal, technology, agricultural and other products.

Government bonds rallied in early trade on Tuesday, as a US–India trade deal sparked fresh buying on hopes that a firmer rupee could draw in more foreign inflows across local markets.

Profit taking, however, capped major moves across bonds, with investors focussed on demand-supply dynamics and the central bank's monetary policy decision due ‍this ⁠week. -Reuters

India's financial markets rallied sharply on Tuesday after a trade deal that slashed US tariffs on Indian goods to 18% from 50%, a development that investors said lifts a key overhang over the country's stocks, bonds and currency.

India's benchmark stock index, the Nifty 50 was up nearly 3% ‍and ⁠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 rose as much as 5% in early trading with the rise putting 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.

Indian shares surged on Tuesday, with the benchmark Nifty coming within 50 points of record-high levels, led by Reliance and export-oriented stocks after the India–US trade deal removed a key market overhang.

Both the benchmarks rose about 5% at the open, logging their biggest intra-day jump in five years.

The Nifty 50 was up 2.81% to 25,799.5, while the BSE Sensex added 2.83% to ‍83,977.92, ⁠as of 9:41 a.m. IST.

US President Donald Trump on Monday announced a trade deal with India that slashes US tariffs on Indian goods to 18% from 50% in exchange for New Delhi halting Russian oil purchases and lowering trade barriers.

Indian equity benchmark indices, the Sensex and Nifty, opened on a strong positive note on Tuesday, February 3, 2026, as India and the United States announced a crucial trade agreement. While the 30-share BSE Sensex surged 3,656.74 points to start the session at 85,323.20, the Nifty gained 1,129.65 points to open at 25,088.40.

Top 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.

As the long-awaited trade deal with the US was announced on Monday, which lowered the tariff rate on India from the coercive 50 per cent to 18 per cent, here is a look at how the Trump administration influenced the India-US trade ties in the run-up to the trade deal, after both countries first began negotiations in February.

Read the full story here.

The steep cut in US tariffs to 18 per cent from 50 per cent under the trade deal has reinforced what was always believed in New Delhi but had begun looking hazy — that the US sees in India an ally and counterweight to China as it seeks to rewrite the norms of the global trade order.

Prima facie, an 18 per cent headline tariff places India in a reasonably good position against competitors in terms of accessing the American market, but the fine print of the deal would really hold the key to how favourable it is from New Delhi’s perspective. India’s deal with the European Union (EU), for instance, was well-negotiated and strived to balance the concerns on both sides, but US President Donald Trump’s negotiation strategy is typically extractive.

Read the full story here.

India and the United States on Monday announced a breakthrough trade agreement, with President Donald Trump and Prime Minister Narendra Modi projecting the deal as a product of personal diplomacy and strategic alignment between the two countries. The understanding, reached during a phone conversation between the two leaders, envisages a sharp cut in US reciprocal tariffs on Indian goods and sweeping market-opening commitments, alongside claims of cooperation on energy and global security issues.

Read the full story here.

US President Donald Trump said Monday that he had agreed on a new trade deal with India and that New Delhi agreed to curb its purchases of Russian oil and increase energy imports from the United States and potentially Venezuela. The announcement comes after months of escalating trade sanctions, triggered by Washington’s dissatisfaction with India’s energy sourcing and broader trade imbalance.

Read the full story here.

US and India, the world's largest democracies and natural allies, are poised to drive peace and development globally. With complementary strengths, they can co-create technologies and solutions benefiting the world. The India-US trade deal is a win-win, brightening the future for both nations. He shared the news on X.