The issues the India-US trade deal fixes and the ones it misses

Sunny Verma & Prashant MukherjeeET Prime

Feb 4, 2026 | 18:54 IST

Image: AI

The India-US trade deal lowers tariffs to 18%, easing uncertainty and supporting exports, the rupee and sentiment—potentially rivaling the EU pact in scale. Yet tariffs remain well above pre-Trump levels, and challenges around FDI, capital flows and energy costs persist.

Can something get bigger than the ‘mother of all deals’?

US President Donald J. Trump’s deal with Prime Minister Narendra Modi may well eclipse the deal with the European Union. Because the latest one is with the mother of all economies.

TOI

TOI

The issues the India-US trade deal fixes and the ones it misses

The India-US trade deal lowers tariffs to 18%, easing uncertainty and supporting exports, the rupee and sentiment—potentially rivaling the EU pact in scale. Yet tariffs remain well above pre-Trump levels, and challenges around FDI, capital flows and energy costs persist.

{{{h1}}}

{{{h1}}}

{{{h3}}}

{{{offerprice}}}

{{{h3}}}

{{{offerprice}}}

{{{h1}}}

{{{h1}}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}

Your Privacy is Important to us

Opt out of the sale or sharing of personal information

TOI

The issues the India-US trade deal fixes and the ones it misses

The India-US trade deal lowers tariffs to 18%, easing uncertainty and supporting exports, the rupee and sentiment—potentially rivaling the EU pact in scale. Yet tariffs remain well above pre-Trump levels, and challenges around FDI, capital flows and energy costs persist.

{{{h1}}}

{{{h1}}}

{{{h3}}}

{{{offerprice}}}

{{{h3}}}

{{{offerprice}}}

{{{h1}}}

{{{h1}}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}