Devil in deal? Why it may be too early to pop champagne on India-US trade pact
As the champagne bottles remain uncorked across Dalal Street after US President Donald Trump's announcement of an India-US trade deal with both stocks and rupee soaring, some market insiders are sounding a note of caution. As details of the bilateral trade agreement are yet to be officially announced, the devil may well be lurking in the fine print.
"The specifics are yet to be known but prima-facie, the 25% additional (penal) tariffs will no longer be levied for buying Russian Oil. The reciprocal tariff will be slashed to 18% instead of 25%. We believe that this is a great boost for the already sombre sentiments. However, one must also remember that exports to the US is a small part of our $4 trillion GDP. So yes the trade deal is good for the economy and markets in the short term but one must not expect miracles out of it,” said Apurva Sheth of SAMCO Securities.
"The specifics are yet to be known but prima-facie, the 25% additional (penal) tariffs will no longer be levied for buying Russian Oil. The reciprocal tariff will be slashed to 18% instead of 25%. We believe that this is a great boost for the already sombre sentiments. However, one must also remember that exports to the US is a small part of our $4 trillion GDP. So yes the trade deal is good for the economy and markets in the short term but one must not expect miracles out of it,” said Apurva Sheth of SAMCO Securities.
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