India-US Trade Deal Ends Months of Uncertainty, Sparks Enthusiastic Reactions
Top economists, fund managers, and leaders from India Inc have reacted with enthusiasm to the news about the conclusion of months of uncertainty surrounding a trade deal between the United States and India. Their reactions span a wide spectrum, ranging from strong nationalistic fervor to discussions on how the deal could rejuvenate global supply chains and benefit financial markets.
Economist Praises India's Firm Stand and Strategic Reforms
Soumya Kanti Ghosh, a member of the Prime Minister's Economic Advisory Council and group chief economic advisor at the State Bank of India, highlighted India's remarkable achievement in standing its ground amidst a hostile geopolitical backdrop. "India has done remarkably well to firmly stand its ground given the hostile geopolitical backdrop by getting the tariff rate down from 50% to 18%," Ghosh stated. He emphasized that during the interim period, India continued with ground reforms and completed a pending trade deal with the European Union as well. "This deal is the hallmark of a country that knows how to stand up, not get distracted by the noise and navigate even in the most difficult terrain in the interest of its own people," he added. For a long time, Ghosh has advocated for a bold stance to counter US demands for concessions that might not have been mutually beneficial.
Business Leaders Express Relief and Optimism
Leaders from India Inc have expressed a sigh of relief at this definitive step towards a full-fledged India-US trade deal. Nilesh Shah, Managing Director of Kotak Mahindra AMC, described the deal's journey as a roller coaster with ups and downs. "While the devil is in the details, it removes a hanging sword over the rupee, equity and rates market," Shah remarked. He expressed hope that the deal would be a win-win for both countries, given their potential gains through cooperation.
Potential Global Impact and Immediate Benefits
Ashishkumar Chauhan, Managing Director of the National Stock Exchange, suggested that this deal could have a broader impact on global trade. "(It's) a welcome move for global trade!" Chauhan exclaimed. Following talks between the US President and the Indian Prime Minister on Monday evening, tariffs on Indian goods will be sharply reduced from 50% to 18% with immediate effect. "(It's) a big win for businesses, supply chains, and the India–US partnership," he concluded, underscoring the deal's significance for economic collaboration and market stability.
