US-India Trade Deal Set to Reshape Economic Ties

India and the U.S. are expected to sign a formal trade deal in March, reducing tariffs on each other's goods. The agreement involves India buying $500 billion worth of U.S. goods, including Boeing aircraft, and ceasing Russian oil purchases. Market reactions were positive post-announcement.

India and the United States are poised to finalize a landmark trade agreement by March, according to Trade Minister Piyush Goyal. The deal will see New Delhi decrease tariffs on U.S. imports, while Washington will lower duties on Indian exports, marking a significant shift in bilateral economic relations.

The agreement, announced on Monday, includes India's commitment to halt Russian oil imports and purchase $500 billion in American goods over five years, comprising a substantial order of Boeing aircraft. This move is expected to bolster U.S.-India ties and bring stability to economic interactions between the two nations.

Indian stocks experienced a rally following the news, reflecting investor confidence in the strengthening alliance. However, domestic political pressures demand transparency on the deal's specifics, particularly concerning the agricultural sector's exposure to foreign competition. Despite granting limited U.S. market access, India retains essential protections.

(With inputs from agencies.)