Mumbai: India’s benchmark equity indices surged on Thursday following US President Donald Trump’s claim that India has proposed eliminating tariffs on American goods. Speaking at an event in Qatar, Trump stated that the Indian government offered a deal “where basically they are willing to literally charge us no tariff,” as reported by Bloomberg. The Indian government has yet to issue an official response to the claim.
By 3 PM, the BSE Sensex had risen 1.45% to 82,506.47, while the Nifty 50 climbed 1.57% to 25,054.80 marking a seven-month high. The rally followed a flat start to the trading session and was driven by optimism surrounding a potential bilateral trade agreement.
“There is speculation that the trade deal will happen,” independent market analyst Ambareesh Baliga told Reuters. Trump’s remarks arrive amid a 90-day moratorium on retaliatory tariffs between India and the US, during which both countries are working to finalize a trade pact. The moratorium was established after Trump imposed a 26% tariff on Indian goods.
India–US trade relations have intensified since Prime Minister Narendra Modi’s White House visit in February. As part of ongoing negotiations, India’s trade minister is scheduled to meet with officials from the Trump administration in the US between May 17 and 20.
Trump’s comments also come on the heels of India threatening to impose retaliatory duties following the US’s decision to increase tariffs on steel and aluminum imports.
Commenting on the development, Ajay Srivastava, founder of the Global Trade Research Institute, told Bloomberg, “An India–US trade deal may be on the cards. But the deal must ensure strict reciprocity, with both sides eliminating tariffs equally.”