‘Indo-US trade deal ends atmosphere of uncertainty’

New Delhi: The announcement of the Indo-US bilateral trade pact has eased uncertainty and is expected to have positive implications for the Indian economy despite global challenges, senior finance ministry officials said on Tuesday.

Under the agreement, the US will reduce the reciprocal tariff on Indian goods to 18 per cent from 25 per cent.

Addressing an event organised by industry body FICCI, Economic Affairs Secretary Anuradha Thakur said India continues to display strong macroeconomic resilience even amid a volatile global environment. She noted that a significant level of uncertainty had eased with the trade deal and said India currently stands out as a macroeconomically strong economy.

She said the government is awaiting detailed terms of the pact to assess whether India’s economic growth in 2026–27 could exceed the estimated range of 6.8–7.2 per cent. She added that the Union Budget for FY27 was framed when steep tariffs were in place, but the government remains confident of meeting all fiscal commitments.

She also said India’s strong growth momentum could help exceed projections for receipts and divestment in FY27.

Financial Services Secretary M Nagaraju termed the agreement a positive development, saying a major source of global uncertainty had been removed. While optimistic about growth, he said credit expansion needs to accelerate to meet the Viksit Bharat 2047 vision, an issue to be examined by the proposed high-level banking sector

committee.