Indian lawmakers from the ruling coalition praised Prime Minister Narendra Modi for striking a deal with the U.S. to reduce tariffs on Indian goods.

India and the US have announced a framework for a bilateral trade deal to strengthen trade ties, under which the US will cut tariffs on Indian goods to 18% from 50%. The Centre has clarified that agriculture and dairy remain protected,

The United States and India finalized a trade agreement Monday, helping stabilize a relationship that had been in decline during Trump’s second term.

US President Trump announced a reduction in US tariffs on India at 18%. However, the opposition was quick to flag issues with the claims made by President Trump and cornered the Modi government within hours.

Two days after US President Donald Trump announced a surprise trade deal with India, New Delhi officials moved to counter concerns that the country may have made too many concessions to secure lower tariffs.

But India's caution has redoubled amid the global turbulence witnessed in the past year, according to analysts.

FPIs have been offloading domestic equities for the past many months amid concerns over various geopolitical tensions, including the levy of higher reciprocal tariffs by the US on India and other major economies.

Prime Minister Narendra Modi has long had to balance ties with Russia and the US as India sticks to its policy of strategic autonomy. That task has been more challenging amid pressure from the Trump administration to stop buying Russian oil,